PFS POWER unveiled strategic guidance aimed at enhancing client outcomes in financial planning during their National Conference in Manchester.
- The guidance focuses on five consumer outcomes: clarity, connection, choice, control, and confidence.
- The initiative stresses the importance of ‘human skills’ in helping clients make informed financial decisions.
- Key speaker Duncan Parkes emphasised the unique outcome-based approach that places clients at the forefront of planning.
- PFS POWER recommends regular updates to financial plans to maintain alignment with client goals.
During the recent PFS National Conference in Manchester, PFS POWER introduced new guidance designed to prioritise consumer outcomes within financial planning processes. This guidance identifies five critical outcomes: clarity, connection, choice, control, and confidence. The emphasis is on leveraging ‘human skills’ to empower clients in navigating their financial decisions effectively.
Duncan Parkes, a leading figure behind the POWER Planning concept, highlighted the distinct client-centric strategy of outcome-based financial planning. He pointed out that while many firms claim to put clients at the core of their operations, only those adopting this specialised financial advice style truly work towards achieving definitive outcomes for clients. Parkes remarked, “Outcome-based financial planning is an approach that puts the client at the heart of everything, but with a subtle difference.” This method uniquely focuses on the emotional impacts and benefits clients experience through financial planning.
The guidance encourages financial advisers to set clear goals with their clients, fostering ‘clarity’ in understanding financial objectives. By assessing client resources, a realistic ‘connection’ with present circumstances and future aspirations is established. Once these foundations are laid, advisers can introduce ‘choice’, thereby enhancing the likelihood of success and instilling a sense of ‘control’ in clients. Regular reviews and updates of the financial plans are advised, which are crucial in sustaining the client’s ‘confidence’ in achieving their financial goals over time.
Carrie Bendall, who heads PFS POWER’s content, shared insights from her extensive experience in personal financial planning since 2008. She has observed that effective client-adviser interactions allow clients to explore personally meaningful financial planning. Often, these interactions resonate with the key outcomes of clarity, connection, choice, control, and confidence, which have been echoed across numerous client conversations.
PFS POWER’s guidance seeks to fundamentally transform the approach of financial advisers by centring on defined client outcomes, fostering more meaningful financial relationships.
