Addressing a packed audience at Defaqto’s DFM Conference today (26 February), Mr Ward, said that the company has a “crow’s-nest view” in where it sits, allowing it to look out at the industry and see what everyone is up to.
Speaking about the current trends in the market, which he said are important for both DFM groups and advisers, Mr Ward said that there is a big “land grab” environment at the moment.
He added: “This is a hot market and there is lots of interest in it with advisers considering their options and DFM groups wanting to provide services.”
Mr Ward highlighted that there is also a growth in the number of service propositions, quoting its own research, which shows that there are 136 services from 66 groups and counting.
He added that M&A activity is starting to surface in terms of groups coming together, and that this is something which will increase in the future.
He continued: “There is huge competition for business and it seems somewhat inevitable that there will be a squeeze on some providers depending on what happens with regulation, it will be interesting to see what happens there.”
Mr Ward added that in the future there will be a pressure on charges, regulatory impacts as the FSA starts to look more at what is going on in the DFM space, and challenges from other outsourcing options.
Speaking about the challenges and opportunities for both DFM groups and financial advisers, Mr Ward said that it is key that DFM’s differentiate themselves and that adviser’s take charge of the process and buy into the beliefs for the benefit of their clients.
