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There will be plenty contained within it to exercise the minds of the great and the good in our industry.

There may be debate over the how and when, but as the why hasn't changed since the original discussion paper in summer 2007, we can assume that most recommendations, if not all, will be seen through to conclusion. So how will the Retail Distribution Review (RDR) affect the multi-manager industry?

One of the key goals of the RDR is to make products clear, simple and understandable. A multi-manager fund should be a straightforward proposition. You pay a premium over and above that paid by a directly invested fund for the expertise of a specialist manager to choose funds, structure a portfolio appropriately, monitor its progress and have all this tied up in its own fund wrapper.

But closer examination of the structures of multi-manager vehicles - and directly invested ones, for that matter - makes it anything but clear. Some funds have a bid/offer spread within which initial charges are contained, while others are single priced with initial charges listed separately.

Ongoing charges for all funds can be quoted in at least two different ways – annual management charge and/or total expense ratio, with European legislators proposing a third. Multi-manager funds also have an additional complication, as there is an inevitable additional layer of charges from underlying funds.

It is hardly surprising the Financial Services Authority issued a warning in 2007, believing many advisers' understanding of multi-manager charges and their ability to explain them to clients were lacking. This will be revisited at some stage, even if not as a formal part of the RDR. This may result in an industry-wide shift in how UK mutual fund charges are presented. I am willing to bet that dual pricing for mutual funds in the UK will have all but disappeared within five years.

Another key goal of the RDR is that firms be soundly managed and adequately capitalised and treat their customers fairly. This is a clear instruction to advisers to re-examine their business strategies. It is highly likely that, as we approach implementation of the RDR, all adviser companies will be doing just that, if they have not done so already.

A fresh look at investment process will form a significant part of many advisers' business reviews, and this may well be good news for the multi-manager industry. Most will conclude, however reluctantly, they do not have the resource, expertise or knowledge to run and maintain client investment portfolios.

Outsourcing some of these investment responsibilities will enable the adviser to focus more fully on relationship management. In this scenario, the adviser's expertise is to advise, discern their clients' particular requirements and arrange to have those requirements met. This is the adviser's 'USP' of the future.

If, as the third goal of the RDR hopes, clients become more capable and confident, they are also likely to become less loyal to their advisers. If an IFA, rather than defend his own investment decisions, works together with his client to source appropriate solutions, this is likely to result in fewer surprises for the client and ultimately a longer-lasting relationship.

But multi-managers beware - this is not the only outsourcing investment solution. The discretionary fund manager is making a comeback in the retail world and should be regarded as serious competition in this space.

Fraser Donaldson is principal consultant for investments at Defaqto