Specialist advice firm and asset manager Frenkel Topping has been granted permission to act as a discretionary investment manager by the Financial Conduct Authority.
The group announced today (14 March) that it has been given full retail permissions as a DFM.
Richard Fraser, Frenkel’s chief executive, said the company can now “press on” and work on transforming its business model.
Frenkel Topping Investment Management, previously called FC Fund Managers before a takeover in September, will become the appointed investment manager.
In the first half of last year, the firm saw assets under management jump by 9 per cent, despite gross profit remaining stable.
Paul McGinnis, research analyst at Shore Capital Stockbrokers - which acts as broker for Frenkel Topping - said over the next year Frenkel is likely to put a lot of effort into migrating a portion of its assets under management across to the new arrangement.
“From 2017 we expect to see further assets move across, as well as new money being attracted to the company’s new retail offering.”
Mr McGinnis suggested Frenkel’s investment strategy, which is centred on low-risk capital preservation, should appeal to “vulnerable individuals”.
Paul Lindfield, director of wealth management at Sedulo Wealth Management, said there is an ongoing trend for advice firms to offer DFM services because it removes the need for client authorisation to switch holdings.
“There is a potential saving for firms if they are using model portfolios for clients when rebalancing is required.
“But it’s not something my company is considering because the permission process is lengthy, arduous and costly. It’s not like flicking a switch, it’s assessed like a brand new business.”
katherine.denham@ft.com
