Prudential is looking at bringing in a range of products with factory-gate pricing in a move to support advisers who want to move away from commission to a fee basis.
The plans are intended to complement the insurer’s overhaul of its distribution model that is designed to provide greater support to advisers it believes are focused on building relationships with customers rather than offering a transaction-based service.
Pru has changed the structure of its sales team, realigning it along geographic lines with the UK split into four regions. Each region has a regional director backed by field and phone account managers and sales-support staff.
These will use regional market intelligence, along with centralised data, to identify bro-kers the company believes are better embedding the principles of treating customers fairly into their business and to focus their main resources on these.
The plans to introduce more products with factory-gate pricing, following on from Pru’s self-invested personal pension launch, are designed to help advisers present clients with more transparently priced products and better support for fee-based advisers.
Distribution director Dave Harris says: “Our Sipp has factory-gate pricing and we need to build more products to support advisers. We will look at individual product pricing next year.”
Pru has visited a number of advisers it has identified as having a high number of clients with consistently below-average persistency rates on bonds as part of its TCF drive. Harris admits these brokers have not always been very welcoming to Pru representatives but insists they have always parted on good terms after talking through the TCF implications.