Issues resurface with DFMs using in-house products


Concerns re-emerge following FCA review

• The FCA’s 2014 review encompassed 18 businesses with a total of £146bn of retail assets via discretionary or advisory services.

• The firms invested around 20 per cent of this amount into investment products “manufactured by a party connected to the firm”.

• FCA concerns included the fact that several firms, including some with high levels of assets in in-house products, were unable to explain how the use of these was linked to their business strategy.

• The FCA said firms should “consider how their own arrangements meet the standards” set out in its review.

• Discus said its 2017 analysis of 70 advisers identified in-house fund use as a chief concern.