New guidelines aim to improve consumer outcomes in financial planning.
- 18% of mortgage-free homeowners face financial uncertainty.
- Scotland’s real estate hits record prices despite market lull.
- PFS POWER conference in Manchester releases comprehensive guidance.
- Emphasis on clarity, connection, choice, control, and confidence in planning.
PFS POWER has introduced new guidelines designed to enhance outcomes for consumers in financial planning, marking a significant development in the sector. Released at the PFS National Conference in Manchester, these directives are positioned to help firms place consumer needs at the forefront of financial planning decisions. The guidelines focus on five key outcomes: clarity, connection, choice, control, and confidence. They emphasise the development of ‘human skills’ to aid clients in making informed financial choices.
Duncan Parkes, a leading figure in the creation of POWER Planning, purports that this approach to financial planning centres around not just the client, but the specific outcomes financial planning can achieve for them. Parkes states, “Outcome-based financial planning is an approach that puts the client at the heart of everything, but with a subtle difference.” This method ensures clients feel the impact of sound financial advice, moving beyond rhetoric to tangible outcomes.
Under the new guidance, financial advisors are encouraged to engage in goal-setting with clients to establish ‘clarity,’ while fostering a ‘connection’ by understanding the client’s current and future financial resources. Once these elements are in place, presenting ‘choice’ becomes crucial, as it heightens the likelihood of a successful financial outcome. Regular review of the client’s financial plan is deemed essential in sustaining ‘control,’ thereby fostering ‘confidence’ in their financial trajectory.
Carrie Bendall, head of PFS POWER content, reflects on her experiences in the field since 2008, highlighting recurring themes voiced by clients seeking financial advisement: clarity, connection, choice, control, and confidence. These themes underscore the necessity for financial planners to consistently revisit and refine their approach, ensuring alignment with client aspirations and resources.
PFS POWER’s new guidelines offer a clear pathway for firms to enhance consumer outcomes by focusing on key emotional drivers in financial planning.
