Pru downplays impact of D2C plans on adviser relationships

Business-Finance-Strategy-Plan-Chess-700x450.jpgPrudential has denied a proposed direct-to-consumer PruFunds proposition would damage the relationships it has with advisers.

M&G Prudential chief executive John Foley says offering the PruFund range direct to customers would open up new channels for the business.

Pru said it would be establishing a direct-to-consumer platform as part of the £250m investment into customer service it announced at its full-year results today.

Foley says the group already had very strong channels with intermediaries so has been developing its direct-to-customer relationships.

He adds offering PruFunds on a D2C basis would open up channels to the business and that the firm “will hopefully have more to say about that later in the year”.

Foley says: “We have excellent sales through the intermediary channels and throughout PFP but once we’ve digitised our offering to customers we would expect to see greater inflows through that channel.”

Prudential has since reassured that any direct offering would not be to the detriment of its adviser relationships.

A spokesman says: “The Prudential brand continues to be committed to financial advisers and the intermediary marketplace.
He says: “We are investing £250m in the business that will see us further develop our range of adviser-focused solutions and create a more efficient and digitally enabled way of working with advisers who are core to the success of our business in the UK.”

The PruFunds announcement comes on the day the firm revealed it would be demerging UK and Europe business M&G Prudential and Prudential to two separate stock market listings and selling off £12bn of its annuity portfolio.

Foley says pension freedoms were a great opportunity for the business to deliver the right outcomes for people into their retirement, adding customers “will start to see a difference in the service they get over the next 12 to 18 months” as it invests in its digital capabilities.

The PruFund range has seen assets under management soar by 46 per cent to a hefty £36bn in 2017, with profit from new business up 28 per cent to £342 million. Overall assets under management for M&G Prudential grew 13 per cent to £351bn.


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There are 2 comments at the moment, we would love to hear your opinion too.

  1. “The Prudential brand continues to be committed to financial advisers and the intermediary marketplace.”

    We’ve heard that before so it remains to be seen if the Pru turn out to be better than some of the other, dubious, providers who have taken the same path.

    Time will tell.

  2. Robert Milligan 15th March 2018 at 12:30 pm

    The Pru is simply “Committed” to its self, it has already dumped its admin of application and Illustrations onto IFA firms, the service standards from Scotland are abysmal, the Plausible Denial of complaints is scurrilous, If it was not for the returns of the Pru Fund, I can assure you we would not be using them, “We” owners of IFA firms have been used to try out their online systems prior to the reinstatement of a Direct Sales Force and now a Direct to Client platform

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