1. Check your client segments and descriptions
Really give this some thought, because it may have changed since you last put together your advice proposition. If you're new to this, from the outset it is absolutely critical to get this right. Thinking about PROD, but more importantly now Consumer Duty leading on from PROD, check your client segments and descriptions, because if you haven't got that right, the rest of it isn't going to flow.2. What services are you going to be delivering per your segments?
With a client in decumulation where you're providing an income for them, cash flow modelling would be appropriate and having a simple solution for a young saver with simple needs would also be appropriate. You need to think about the services you're going to be delivering per your segments.3. Rerun your research.
This needs to be done on an annual basis. Even if you have an advice proposition in place, rerun your research.4. Review the due diligence and check provider target market/value assessments.
We would expect firms to have on file, the provider target market for the underlying products and platforms that they are working with. But also, a value assessment as well. It is important to have these on file, to backup what you're going to be using moving forward.5. Consider cost and value per segment.
Think about the segments you're working with, what are the costs, and what is the value you’re providing, or that is being provided for them.6. Think about where client vulnerability could appear.
This is a big area now, and although it could be in all segments, be more specific and think about the segments that are more likely to be impacted by client vulnerability and the mitigation you'll put in place to help with that, and then the plans as a business to deal with that7. Document what you did.
Throughout all of this, it's all about documentation. Think about your Centralised Investment Proposition as your internal process document. If anybody joined your business, or even for the existing people you have within your business, everybody should understand what your Centralised Investment Proposition is, and how it operates and the processes you have in place for dealing with retirement income etc.
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