If you’ve ever been on the receiving end of well-timed expert financial advice, you’re in the know. Financial planning is not just a nice-to-have for the already-wealthy, it’s an essential service for people who want to make the most of their wealth and income. The right help and guidance can change people’s lives. If you’re looking for a career that combines the satisfaction of helping people with the challenge of working with finances and the rewards of compensation and security, financial planning could be for you.
Within this rapidly changing industry, there are two main roles to choose between: paraplanning and financial planning. Not too many years ago, there wasn’t much of a difference between the two. Paraplanning was often just a stepping stone for financial planners in training. However, with the direction of industry regulation and the push for professionalisation, the two jobs are becoming more distinct. This means for new entrants, there’s an important choice to be made. To make this choice, it helps to understand the actual differences between financial planning and paraplanning as jobs, and pathways to each.
Paraplanning vs financial planning
In general, financial planners are the face of the business. They meet with clients, do the work of interviewing them and presenting plans to them for approval, hold the license/are the representative, and it’s their name on the paperwork.
Paraplanners do all the behind-the scenes work. This means they get the client information from the financial planner, research and select options designed to meet the client’s needs, and pass these back to the planner. Paraplanners may also be responsible for filling in paperwork and getting proposals ready and polished for presentation to clients.
It’s important to note that the balance of responsibilities can vary between different practices. For example, some independent financial planners lean heavily on their paraplanners for product research, whilst authorised representatives may direct paraplanners in more administrative and marketing tasks. To see for yourself, try searching for ‘paraplanner’ and ‘financial planner’ job ads online, and scroll straight to the ‘key responsibilities’ or job description section. You’ll see that some require a variety of general administration and filing tasks in addition to core paraplanning duties.
Financial planners do most of the meeting, communication, interviewing, negotiating, and other face-to-face client interaction. They need not just extensive working knowledge of financial products and services, as well as a positive and proactive attitude towards legal compliance and ethics, but also great people skills. The most successful financial planners form strong positive working relationships with their clients lasting many years.
| Paraplanner | Financial planner |
| May occasionally speak to clients on the phone, or not at all | Usually meets clients in person |
| Takes interview information from financial planner | Interviews clients to understand needs and goals |
| Conducts specific financial product research | Gives direction/guidelines on product category research |
| Prepares proposal for planner | Presents proposals to clients |
| Some administration and filing work | Manages and delegates administration tasks to staff |
| Administrates implementation of advice | Directs implementation of advice |
| Monitors review timetables | Undertakes review appointments per timetables |
| Employee of license holder | Authorised representative/license holder |
Becoming a paraplanner vs becoming a financial planner
New financial planners are now required to hold a relevant degree, a year of work experience, and pass a national exam. This is a much more onerous standard of education and qualification than the previous RG146. These changes to regulation are aimed at improving professionalism and public confidence in this industry.
The changes help bring financial planning closer to the standards of related professions such as accounting and property law.
What this means is that the pathway to becoming a financial planner, from scratch, is now much longer than it was. Approved degrees may take years to complete, whether it’s a full-time undergraduate degree or one of the approved graduate qualifications. That’s not necessarily a bad thing, because those years of study result in deep understanding of the financial systems and ideas that underpin great advice. But it’s something worth considering for those who aren’t even sure they want to become a financial planner.
The standard for new paraplanners is the Advanced Diploma of Paraplanning. This is a nationally recognised VET qualification that’s designed to take under a year of study (or up to two years part-time, self-paced). It’s packed full of essential finance theory for paraplanners, but it’s also aimed at getting you job-ready – even if you don’t have any current paraplanning experience. It’s similar (although a bit more comprehensive, and not exactly equivalent) to what was previously required to be RG146 compliant.
Introducing the Advanced Diploma of Paraplanning
The new Advanced Diploma of Paraplanning is designed to get paraplanners job-ready for a variety of possible working environments, from smaller firms to larger practices where the specific tasks may vary. It focuses on the specialist technical skills and knowledge required to do all the behind-the-scenes financial planning work that they need to do under the direction of the planner or adviser. Each part of the course focuses on a different aspect of complex situations and issues that can arise, from compliance monitoring to developing plans for clients with specific circumstances.
There is no particular entry requirement for this qualification; you don’t technically have to have another qualification to get in. However, it’s highly recommended that you have a relevant qualification such as a Diploma of Financial Planning, an accounting qualification, or significant work experience in the industry (even if not all in a paraplanning role). Learners are expected to already be familiar with basic financial terms and concepts. If you don’t already have an Advanced Diploma or higher qualification, you’ll be required to take a brief test (including a numeracy test) to make sure you’ve got what it takes to work your way through this course effectively.
This qualification is made up of 12 units (subjects):
- FNSINC411 Conduct work according to professional practices in the financial services industry
- FNSFPL621 Comply with ethical and operational guidelines, legislation and regulations in financial planning
- FNSCUS516 Record and implement client instructions
- FNSPRM611 Monitor and review organisational system compliance with legislation and regulations
- FNSFPL609 Prepare advice in managed investments
- FNSINC511 Conduct financial product research to support product recommendations
- FNSFPL622 Conduct financial planning analysis and research
- FNSFPL610 Prepare advice in superannuation
- FNSFPL619 Prepare advice in life insurance
- FNSFPL614 Develop financial plans
- FNSFPL615 Present and negotiate financial plans
- FNSFPL616 Implement financial plans
Choose Monarch Institute for your Advanced Diploma of Paraplanning
Monarch Institute has a long history of helping financial planning professionals get confident and job-ready for this fast-changing industry. Founded by financial planners who wanted to give learners the real-world education they wanted as students, Monarch has specialised in nationally recognised financial services qualifications for several years. We’re trusted by leading employers to deliver training for their financial services staff, and graduates can take advantage of Monarch Institute’s great professional network.
As a future financial services professional, you deserve a learning experience that leaves you confident and excited for the line of work you’re about to get in to. You’ll love your time learning with Monarch . It’s not just us saying that; check out the reviews from hundreds of real graduates over on Trustpilot. Students love the combination of independence and freedom to study at their own pace, with the personal support from trainers with decades of experience.
Still not sure whether paraplanning is for you? Want to find out more about our Advanced Diploma of Paraplanning? Register your interest or chat to one of our friendly course consultants today on 1300 738 955 or [email protected].
