Institute of Financial Planning advisers are to be provided with a list of questions from Defaqto to support their fund-related due diligence process.
The IFP’s decision to team up with Defaqto comes after the FCA warned that poor disclosure by fund managers was hampering adviser due diligence and would therefore be examined as part of an upcoming review.
In November,the Financial Conduct Authority’s Rory Percival said as fund charges are not clear it is currently challenging for advisers to find out the information they need to do proper due diligence.
The Defaqto initiative will kick off with a factsheet on multi-asset funds which will give a “constructive overview” of the multi-asset universe, using an infographic that has been developed by Defaqto’s in-house consultants and has not been published before.
Defaqto said the factsheet not only helps advisers identify fund types they may want to consider, but it also provides a list of questions to support their fund-related due diligence process.
David Cartwright, head of insight and consulting for wealth and protection at Defaqto, said: “This initiative shows how dedicated we are to equipping advisers with the right tools and resources to help them deliver compliant, professional and efficient advice.”
Steve Gazzard, chief executive of the IFP, said: “Defaqto are well respected for producing high quality research materials and we’re very pleased to be working with them on this initiative.
“By doing so we’re aiming to provide financial planning professionals with access to practical resources which will not only support their due diligence processes and CPD but also help them to continue to deliver effective solutions to their clients’ financial planning needs.”
emma.hughes@ft.com
