Launched in July 2015, PPS Financial Planning has gained more insight into clients’ needs regarding financial advice. This has seen a fundamental shift in the distribution strategy that was rolled out as from January 2016.
The distribution model centres around client-focused financial advice, with a financial plan specifically designed for every client based on their unique needs and financial goals.
From the outset, PPS Financial Planning introduced a remuneration model whereby members pay fees depending on the particular financial planning intervention, such as risk, retirement, estate planning etc.
The division has succeeded in its aim to employ graduate professionals as financial advisers in order to build rapport with clients. Amongst the 12 financial advisers currently employed in the major cities, all are graduate professionals and eight have the Certified Financial Planner (CFP) qualification. This model will result in removing sales pressure to market products.
The division has embarked on a process of streamlining the internal distribution of the Group. The previous model, whereby the client potentially had to engage with three different people for advice – financial planner, risk product adviser and investment adviser - will be adjusted so that the client experiences one relationship leveraging the expertise of all the advisers in the channel. The financial planner will provide information to the risk and investment advice specialist to enable them to find the right products for the client and vice versa, to enable a holistic planning conversation with the financial planner. In the process the services of 270 advisers will be integrated into one team to also ensure a consistent member experience across the PPS Group.
The changes in the internal distribution model will unlock the potential to market the financial planning offering to more of our members. By extending the offering to independent financial advisers, a further cohort of clients can be reached.
In January 2017, the division launched a digital financial planning tool, in line with the global trend towards “co-planning”, where clients use web-based technology to design a financial plan with the assistance of an adviser.
To complete the offering to clients, PPS intends to launch fiduciary services soon, in line with PPS’ commitment to do what is right for the members and to assist the graduate professional to live the life they want to live.