ePRID is designed to produce FSA compliant illustrations, projections, and key features for new clients and in addition provides for reviews of existing clients in respect of:-
• Income Drawdown (Full, Partial & Nil)
• Phased Drawdown
• Alternatively Secured Pension
The system allows for:-
• Various commission terms - initial, renewal, fund based, restricted maximum
• Special deals
• Protected rights( split pre and post April 1997)
• Variable vesting ages
• Targeting net or gross income
• Targeting for maximum GAD limits
• Allowing for other sources of income
• Tax-free cash restrictions
• Critical Yield calculations
• Annuity purchase comparison at various ages
The system will produce reports that can be easily personalised. These reflect the requirements of FSA type A and type B illustrations.
More importantly than a single illustration are the facilities to undertake “what if” calculations – on-line, directly and without the delays intrinsic in the traditional paper-based presentations.
The facilities within ePRID enable instant answers to the following questions:
- What happens if I want to convert to an annuity at any time?
- What happens if I want to change my Tax Free Cash requirements?
- What happens if I want to change my Withdrawal benefits?
- What happens if I want to change the form of my Target benefits?
- What happens if I want to change my asset allocation or Investment Growth assumptions?
The presentation of this information on line, when face-to-face with an adviser can provide a response to the individual at the point when they are, generally, ready to make a decision. Further, providing the information at the right time in this way significantly reduces costs both in terms of human resource and printed media.
CTC has now added a Risk Profiler to the suite of illustration and planning products of which ePRID is a part. The Profiler takes the form of a configurable set of questions which can then be “scored” to provide a risk rating. The risk rating can be broken down into any number of grades (e.g. 1-5, 1-10) and presented pictorially, together with a verbal summary of the appropriate Risk Profile.
The given Risk Profile can then be linked either to an asset allocation, or to one or more funds that are appropriate for the risk grading.
The funds which are available to a particular client can be linked directly to the product selected for the client. The Risk Profiling questions are configurable and can themselves be varied by product or scheme.
The growth rates and actuarial assumptions used by ePRID (or CTC’s other illustration products) can be directly linked to the fund selected, thus reflecting lower growth rates for funds such as cash and bonds, with higher rates for equities and more risky investments.
Clients can assess the effect of different risk profiles or asset choices in the illustrated fund or pension results.