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Paraplanners urged to grow via other professional links
by William Robins on Nov 18, 2010 at 09:05
Freelance paraplanners should be looking to forge relationships with lawyers and accountants as a way to expand their business, according to Heidi Witham.
Witham, who founded Absolute Paraplanning in 2008, said lawyers often needed help choosing where to deposit client funds.
‘What I have been looking at in the first instance [is helping] lawyers when they have to decide what bank to [deposit client money] in. If anything happens to that bank the lawyer needs to be able to show there has been due diligence and a report written on that decision,’ she said.
Witham said there was a crucial distinction between advisers and paraplanners that can protect paraplanners sitting between accountants, lawyers and other institutions.
‘The key thing is that any work done is under the lawyer or accountant’s liability so it is clear you are doing something they have asked you to do.’
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1 comment so far. Why not have your say?
Chris Holmes
Nov 18, 2010 at 16:09
Just a couple of minor observations here:
1. When relying on the professional practice to retain the liability, as suggested, both parties should be very clear about the FSA Scope rules under DPB authorisation: tick box for accountants and universal for lawyers. Thankfully cash accounts fall outside of the requirements, but the dividing line can be a fine one, especially where you are looking to provide a service, but accept no liability for your guidance.
2. Client funds are generally held on the client account, of course, as SAR will allow the law firm to earn some of the interest for longer term holdings. The alternative will often be with a local bank/building society, where an informal, reciprocal relationship exists for client work.
If you can break through the above, you will have a very good relationship......
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