PPS Financial Planning was launched in September 2015 to expand the PPS offering to include client-focused financial advice to the existing services and products.
The goal is to assist clients to achieve their life goals by providing lifestyle based financial plans. This planning division is aligned with the regulatory changes proposed under the Retail Distribution Review (RDR) and Treating Customers Fairly (TCF).
PPS Financial Planning was created following research of global distribution trends that revealed a need for a client-centric advice approach, as opposed to a product-driven sales approach.
Planners are able to provide basic, comprehensive or bespoke advice depending on the client need and the complexity of their financial situation. Recommendations are lifestyle related and appropriate to meet the financial needs of clients throughout their life stages.
Based on informed advice, clients can decide which product or combination of products is best suited to meet their financial needs. The client always remains in control as planning services and their respective costs are clearly disclosed.
The financial planner’s role is to guide members through each step of the financial planning process to help them understand and achieve financial goals through a professional long-term relationship. The planner analyses all relevant information to determine the current financial position and what needs to be done to meet the financial goals and objectives before recommending appropriate actions. Products are used to implement the plans. The planner may also assist with the implementation of the plan, once the client understands and agrees with the recommendations.
Based on the long term relationship with members that PPS strives for, the planner will regularly evaluate the financial plan against the pre-determined objectives. Clients also need to take responsibility for monitoring the financial plan and to seek advice if the plan needs to be revised.
The remuneration model of PPS Financial Planning will add another source of profit for the group in which members will share through the PPS Profit-Share Account.
The model is not based on product sales. The product in the context of PPS Financial Planning is seen as a means to an end as opposed to the end itself. Members pay up-front planning fees on an hourly basis for the time spent with the planner to determine how to address the client’s needs, a product advice fee for finding the best product to implement the plan with as well as a fixed fee for the implementation of the financial plan.
The financial planners will focus strongly on the client outcome and are able to advise on all products in the PPS Group, including Life, Short-Term Insurance, Investments and Medical Aid.
PPS Financial Planning is starting out with a team of 12 financial planners and has plans to expand in 2016.
A proprietary financial planning tool has been developed by PPS Financial Planning for members to explore different scenarios to discover which products are best suited to their needs and circumstances.
PPS is committed to do what is right for the members and the goal is to assist the graduate professional to live the life they want to live.