So another must is understanding how regulation works: the FCA’s responsibilities, its approach to regulating the industry and ensuring consumer protection is in place and then the specific regulations affecting financial planning and advice.
From the wider environment to the personal; understanding different types of risk and how they relate to institutions and individuals is a key element of a paraplanner’s role, along with the impact of taxation on investments and other recommended solutions.
But, not only that, any good qualification should cover the ethical, legal and vulnerability considerations – helping to ensure that consumers get the right outcomes depending on their circumstances.
John Somerville is head of regulatory relationships at the London Institute of Banking & Finance
This column is supported by Scottish Widows
