Mifid II 

Guide to segmenting clients

  • Describe the main issues relating to segmenting
  • List the dangers with segmenting
  • Describe the importance of the Prod rules
CPD
Approx.60min
Guide to segmenting clients

Introduction

Segmenting clients has become a crucial part of an adviser's work since the RDR imposed rules to do as much.

But how one segments those clients is open to question.

Does an adviser just do it just by assets under management, or by complexity, or indeed where they are on their retirement journey?

The issue has become more pressing, as under rules springing from Mifid II, this has become a much more sophisticated process, and providers now have to be involved as well.

This guide seeks to explain how advisers should go about segmenting their client base, and how to make sure they comply with the rules, as well as some of the pitfalls that can occur with segmenting clients.

My thanks go to: Graeme Jones, regulatory policy and technical consultant at Bankhall; Chris Davies, founder of Model Office; Rory Percival, regulatory expert at Rory Percival Training and Consultancy; Jamie Farquhar, business development director at Square Mile; Jiten Varsani, mortgage and protection adviser at London Money; Mark Polson, principal at the Lang Cat; Don Scott, technical director at TCC

In this guide

CPD
Approx.60min

Please answer the six multiple choice questions below in order to bank your CPD. Multiple attempts are available until all questions are correctly answered.

  1. Which of the following is NOT used as criteria for segmenting clients:

  2. What is one of the big segmenting mplications for providers under Mifid II?

  3. According to Chris Davies, segmenting clients enables advisers and their companies to evidence and track clients’ financial journeys, true or false?

  4. What do the the PROD rules do?

  5. Which of the following do providers not need to produce information on:

  6. What is one of the main pitfalls of segmenting your clients?

Nearly There…

You have successfully answered all the questions correctly, well done!

You should now know…

  • Describe the main issues relating to segmenting
  • List the dangers with segmenting
  • Describe the importance of the Prod rules

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