PROD

Happy Friday, everyone!

I wondered if anybody here could provide a little clarity on PROD, and the level of detail required?

As an example: for annuities, would you just say "annuities" and which target market(s) they're deemed suitable for, or do you have to list out all the various types of annuities? Or somewhere in the middle?

Any insight greatly appreciated!

Thanks,

Becca

Comments

  • Hi,

    I'd use 'secure income products', which would include compulsory and purchase life annuities, and fixed return structured deposits (ie capital guaranteed).

    Then a description of the target market that it will/won't suit. I'd shamelessly steal this from the provider's own descriptions! Then tailor some elements to fit your firm, such as minimum investment amounts

    EG

    A compulsory purchase (lifetime) annuity may be suitable for clients if:

    They are aged 55 or above
    They have pension savings that they want to crystallise equal to at least £XXX after deduction of any tax-free cash
    They need to generate a guaranteed lifetime income because they are retiring from employment or to replace another income source
    They want their spouse/partner or other beneficiary to receive an income and/or lump sum after their death

    I reckon it's very easy to over-complicate this so I'd keep it light. You don't want to end up being unable to fit your existing clients into your target markets!

    Benjamin Fabi FPFS
    Chartered Financial Planner

    http://twitter.com/benjaminfabi 
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