Thus a number of firms have stated an intention to outsource and the use of model portfolios in particular is expected to become more popular under the Retail Distribution Review, as advisers seek to retain control of the investment process while limiting risk to themselves.

However, outsourcing investment is not in itself the answer to everything and is not quite the easy option some might hope. Risks remain, they’re just different risks.

Advisers are not guaranteed independent status by using model portfolios and there are various fundamental actions that advisers need to still perform.

This guide looks at determining client suitability, your regulatory requirements be under RDR, and charging issues.

Answers are provided by Andrew Whiteley, partner at AssetFirst; Rob Gleeson, head of investment research at FE; and Josh Adams, head of marketing at Hawksmoor Investment Management.