SJP: Our model portfolio will not worry FSA
More on Discretionary Management
- How Black Monday could expose flaws in DFM selection
- Cazenove eyes tech improvements to aid advisers
- Wellian partners with IFA FiveWays Financial Planning
In focus: Outsourcing Investments
Chris Ralph, chief investment officer of wealth manager St James’s Place, is quick to distinguish between his company’s model portfolios and the centralised investment propositions which are worrying the FSA.
The Financial Services Authority (FSA) seems worried about centralised investment propositions in recent guidance it put out.
Earlier this week, the regulator published finalised guidance warning that the use of model portfolios could threaten advisers’ independent status. According to the FSA, advisers must carry out due diligence to ensure portfolios are suitable for their respective clients and to avoid shoe-horning clients into portfolios that may not exactly fit their needs or risk appetites.
In an interview with FTAdviser, Mr Ralph said SJP’s proposition “is centralised to the extent that we want to ensure that if we have clients that have a similar attitude to risk and time horizon they have a similar investment experience.”
He added that there are a lot of similarities between clients, and that it is appropriate for them to use a relatively similar strategy.
He said: “‘Central investment propositions’ implies a level of lack of personal contact between the adviser and the client, and that there is a specific route through which the client has to invest and that’s not the case with SJP.”