Defaqto has launched a study on platform-hosted discretionary fund management propositions aimed at informing financial advisers on the latest trends and developments in the marketplace.
The CPD-accredited publication covers the different types of discretionary services available on platforms, and the regulatory framework and factors to consider for outsourced investment services on a platform.
It also explores the difference between services available on platforms as a combined proposition versus similar ones available directly from a discretionary service provider.
David Cartwright, head of insight and consulting, wealth and protection, said: “The increase in the use of discretionary management services is significant. In response to this trend providers have been developing more and more varied products and services to meet the demand, especially on platforms.
“Our figures show that 76 per cent of the platforms available to advisers now offer some form of discretionary fund management capability.”
Earlier in April, the independent researcher of financial products announced a market update on managed portfolio services for financial advisers which explores due diligence requirements in the discretionary investment management marketplace.
It outlines compliance challenges, including scrutinising the fundamentals, such as terms and conditions and charges as well as taking a closer look at the finer details of the proposition.
Adviser view
Simon Torry, chartered financial planner at Essex-based SRC Wealth Management, said: “I think that the study would prove useful for certain advisers. I think what we are seeing is a lot of DFMs trying to adapt to the post-retail distribution review world and the proliferation of research and offers of DFM on platforms.”
Commenting on the market update on managed portfolio services, he added: “Doing due diligence on DFM solutions is tough because DFMs quite often outline features of their service that are difficult to measure, such as their performance.”
