Impact of regulation on the shape of IFA distribution and strategic opportunities pursued by Sanlam
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Impact of regulation on the shape of IFA distribution and strategic opportunities pursued by Sanlam. Regulation will change significantly. Overview of RDR Implications. How RDR affects Product Design. RDR – the direct impacts: Remove commission bias Transparency and disclosure

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Impact of regulation on the shape of IFA distribution and strategic opportunities pursued by Sanlam


Regulation will change significantly
Regulation will change significantly strategic opportunities pursued by Sanlam


Overview of rdr implications
Overview of RDR Implications strategic opportunities pursued by Sanlam


How rdr affects product design
How RDR affects Product Design strategic opportunities pursued by Sanlam

  • RDR – the direct impacts:

  • Remove commission bias

  • Transparency and disclosure

  • Increase professionalism of advice

CONSUMER AWARENESS & TRUST

  • AND Indirect impacts:

  • Capital and Value flow

  • Use and role of Platforms

  • New routes to market

  • From Products to Propositions

RE-ENGINEER

THE

MARKET


Advice models and standards
Advice models and standards strategic opportunities pursued by Sanlam

Product design must be tailored to the channel & the advice model


Changing business models
Changing Business Models strategic opportunities pursued by Sanlam


Product to proposition
Product to Proposition strategic opportunities pursued by Sanlam

  • Proposition

  • Focus on life cycle needs

  • Distributor and Customer needs

  • Whole value chain, how is the product generating its return and how is the distributor generating theirs?

  • ‘Marry’ the product with the advice

  • Stay focused on needs

  • Product approach

  • Focus on acquisition

  • Distributor versus Customer needs

  • Only part of the value chain, focussed on product returns

  • Narrow definition

  • Leads on features and benefits

  • Products supplemented with commission and wider support to distributors


Focus on acquisition
Focus on acquisition strategic opportunities pursued by Sanlam


What do IFAs want? strategic opportunities pursued by Sanlam

  • To deliver on promises to clients

  • Cost efficiency

  • Sustainability

  • Building value

    • Demonstrate assets under influence

    • High proportion of reoccurring income

    • Profitability

  • De-risking

  • Guarantees

  • Expertise

  • Training

  • Marketing

  • Business support

  • IT support


What will be the drivers moving forward? strategic opportunities pursued by Sanlam

  • Guarantees

    • At a sustainable cost

    • That are safe

    • Reduce risk not increase it

    • Post retirement market

    • With profits? Will the Pru win?

  • Cost

    • Building the scale


What will be the drivers moving forward? strategic opportunities pursued by Sanlam

  • NMG Survey

    “The lack of ‘cost leader’ in the UK Wealth market demonstrates the difficulty of achieving cost efficiency with complex legacy books”

  • Barriers to entry

  • Transparency

  • De-risking

    • Building process with IFAs

    • Managing funds to risk categories

    • Sharing risk


What will be the drivers moving forward? strategic opportunities pursued by Sanlam

  • Value

    • Recognising the shift in the value chain

    • Proctor and Gamble to Tesco

    • Effect of regulation

  • Distribution

    • Different channels

    • Value of independence

  • Specialisation

    • Tax planning

    • Differentiation


How Sanlam are positioned to respond strategic opportunities pursued by Sanlam

  • De-risking

    • Building process with advisers

    • Managing funds to risk categories


Recognising the shift in the value chain strategic opportunities pursued by Sanlam

  • Joint venture discretionary fund management businesses

  • Investment partnerships

  • Product design


Specialisation strategic opportunities pursued by Sanlam

  • Technical

  • Tax

  • Business consultancy


Cost strategic opportunities pursued by Sanlam

  • Lack of legacy

  • New entrants

  • Niche

    • Self select

    • Section 32


Brand strategic opportunities pursued by Sanlam


Ambitions strategic opportunities pursued by Sanlam

  • Partner with up to 50 FA businesses in the post RDR world

  • 10 joint ventures building to £500m per relationship

  • 40 investment partnerships

  • Niche products – app on iphone


The winners will be… strategic opportunities pursued by Sanlam

  • …“Those that align closest to distribution”


Energising Together strategic opportunities pursued by Sanlam


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