To help with this, the firm has published guidance on how to best outsource work.

The paper ‘The role of outsourcing post-RDR’ covers the three main types of outsourcing and how it can cut costs, improve efficiency and improve client outcomes.

The three types are outsourcing the investment process /administration or using research specialists to produce product and service panels, using back office systems to record client details and outsourcing work to a Paraplanning business.

Fraser Donaldson, Defaqto’s insight analyst for funds, said: “For many advisers, outsourcing part or all of their operations will be high up the agenda to support the advisory proposition from 2013. There are a number of outsourcing routes open to advisers, from investment-related outsourcing to engaging with Paraplanning businesses.

“As ever the robust due diligence cannot be overstated to ensure that advisers select appropriate partners in order to  take advantage of the benefits of outsourcing.”

Cathi Harrison from outsourcing Paraplanning company Para-Sols said: “We find advisers like to use our service as it gives them flexibility and means they don’t have to hire a full-time employee especially if they may only need a Paraplanner during busy periods.

“Using a Paraplanner frees up the advisers’ time, there’s so much regulatory pressure on them they don’t have time to do all the other tasks such as report writing and research which is where a Paraplanner can help and this means they have more time to see their clients.”

The paper is available from Defaqto’s RDR Zone at www.defaqto.com/adviser/rdr