Prudential Plc · LSE:PRU
Prudential — Corporate Update (November 2016)
7 slides from Prudential's corporate update, Nov 16, 2016
Slide 1: Drew Bowden, Alison Reed – US
Drew Bowden Alison Reed US
Slide 2: Department of Labor (DOL) Fiduciary Rules
Department of Labor (DOL) Fiduciary Rules • Over 1000 pages • Expanded the definition of “fiduciary” to cover virtually all suggestions and recommendations to individual investors in qualified accounts, including IRAs • Adopted a new PTE that financial institutions must satisfy before they can lawfu
Slide 3: DOL Industry-Wide Implications
DOL Industry-Wide Implications Product • New rules discourage commission based products and encourage fee based products over the long term • Product standardization and product menus: Distributors want to reduce product conflicts and menus • Distributor driven customization: Distributors want the a
Slide 4: Broker Dealer Assessment of DOL Rule – Top 20 BDs
Broker Dealer Assessment of DOL Rule – Top 20 BDs Comply with BICE Reasonable Comp 2 1 10% 5% 7 35% 11 55% 17 85% 2 10% Yes Likely No Mid 5-6% Low <5% TBD Limiting Product Menu BICE to Non-Qualified 2 10% 5 25% 10 10 50% 50% 13 65% Source: Internally sourced from surveys and conversations with distr
Slide 5: Jackson's DOL Preparedness
Jackson’s DOL Preparedness Product • Fiduciary changes: Perspective Advisory (Jackson’s fee based variable annuity) launched September 2016; Elite Access Advisory projected launch in January 2017 • Product standardization and product menus: Jackson retired standard-alone L-share and launched a bundl
Slide 6: Jackson is Well Positioned for DOL
Jackson is Well Positioned for DOL Jackson attributes well aligned to DOL requirements Fee based VA launched 19th September Clarity on top distributors’ DOL positioning Optionality to access additional asset pools Strong structural demand for guaranteed income
Slide 7: Jackson Defined
Jackson Defined A long history of successful delivery to all constituencies Prudently priced, consumer centric retirement solutions Expert, highly professional engagement with advisors Efficient and scalable operations enabling best in class service to consumers at industry leading expense rat