mountain outlook

Centralised retirement proposition

A case of déjà vu?

Jamie Evans, Business Development Manager

In an article originally published on Professional Paraplanner, Jamie highlights how the debate about Centralised Retirement Propositions could follow the introduction of Centralised Investment Propositions by advisers.

Over the course of the last year, the trade press has been busy publishing a variety of stories on the burgeoning popularity of centralised retirement propositions (CRP). I have to admit that some dim and distant memories were stirred by that coverage. A quick internet search later, and I found a similar set of headlines, but, that had originally been about centralised investment propositions (CIP). At least this explained my sense of déjà vu.

It was actually just seven years ago (in 2011) that the CIP term was coined by the Financial Conduct Authority (FCA), (formally known as the FSA) in its Retail Conduct Risk Outlook. By the beginning of 2018, the lang cat were flagging that now more than 90% of firms offer CIPs and some 84% of firms use them for over 80% of their new business flows (well, at least those that were researched).

However, while the CIP debate has certainly had its day, the discussion as to whether to implement CRPs seems set to be following a parallel journey, which – I have to admit – has had me scratching my head as to why.

We’re told that most of the industry accepts that CIPs are pretty much the only way to achieve a consistent and cost effective approach for clients to take up appropriate investment solutions, and one that is in line with the regulator’s thinking.

We’re also told that it’s already three years ago that Rory Percival (then at the FCA) expressed the view that the same recommendation in accumulation and decumulation, even for the same client in the same risk profile investment, may not be right.

Looking back at the lang cat research, the reason most advisers gave for adoption of CIPs was because “we are advisers, not investment managers”. So why aren’t advisers jumping at the implementation of a CRP?

Part of the reason is that most solutions for retirement planning/ decumulation are very new – it’s only three years since pension freedoms provided advisers with what is essentially a new business opportunity. Another reason may be that there aren’t enough clients with defined contribution pensions. Meanwhile, having just spent the time to implement a CIP that ‘feels’ right for the advisor practice, there might not be enough mileage on the clock to really understand the benefits for your business.

So, what are 7IM doing to promote CRPs? Aside from 7IM’s own retirement planning services and SIPP, we’re keen to offer education and support through our events. In these, we talk through our research into our retirement income and decumulation propositions. And, in line with the “we are advisers, not investment managers” quote from earlier, we also want to help extend your knowledge of estate planning and the various investment wrappers that we appreciate will be more useful given that clients who seek drawdown represent a much longer term relationship than clients opting for annuities.

We already have one date in the diary for 4 October at 7IM’s offices in London, where we are looking to host paraplanners from the South East; but others will be scheduled in due course. So if you are interested in joining one, please email me We hope that we see you soon…


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The value of your investments and the income from them may go down as well as up, and you could get back less than you invested.
The value of your investments and the income from them may go down as well as up, and you could get back less than you invested.

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