20th October 2010

Segmenting your pensions business

All clients are different - so a "one size fits all" approach to the service you provide isn't sustainable in the current pension environment. Segmenting your pensions business could be the answer.

The regulatory requirements of TCF, the recent industry activity around the Retail Distribution Review and the thematic review of pensions switching have all placed greater emphasis on the work you are required to undertake for each client.

These initiatives have highlighted two key requirements:

• the importance of the suitability of the initial advice and
• the need to provide an ongoing service to all your clients through regular reviews.

How to provide ongoing reviews to each of your clients profitably

Wrap is one solution but it's unlikely to be cost effective for all your clients.

We believe that wraps are only suitable for those clients that take an active role in investing their funds and have substantial amounts of money. This is because of the high level of contact that you need have with them.

What about the rest of your clients? Can you afford to service all of them in the same way?

Can all your clients afford all your services?

It's crucial to offer each client the right service model at the right price.

Divide your pensions business

Segmenting your pension business and service levels can help to create a profitable business model which satisfies your regulatory requirements. But you may have to completely change your existing business practises.

We can help your business

We believe we have the perfect solution to help you provide the ongoing service to your clients – our Governed Range investment option. The Governed Range is made up of a number of risk-graded Governed Portfolios and Lifestyle Strategies and aims to help you with the ongoing suitability of investments for any client.

This allows you to focus your time on the clients that add the most value to your business whilst helping you meet your regulatory requirements of your other clients.

What's more, this is all available as part of our standard offering with no extra cost to you or your client through our flagship individual pension – Pension Portfolio.

Need a hand?

We can help you to find a practical solution and support your business through this transition. Visit www.scottishlife.co.uk or to discuss how segmenting your business can help, please contact your usual Scottish Life representative.

Pensions