DFM service added to Novia platform

Advisers who use Novia will now have access to P1 Investment Management’s nine core model investment portfolios, which span five risk levels and three primary objectives: income, capital growth, and balanced.

P1 is owned by advice firms which all contribute to strategic decision making to ensure the platform and investment management services develop in line with the needs of advisers and their clients.

Last month, P1 was added to Ascentric, which was the first platform to add the new DFM service.

James Priday, managing director of P1, said teaming up with Novia means the DFM service can broaden its reach to more advisory firms as it aims to boost efficiency and keep costs down.

P1's model portfolio service on Novia is 0.25 per cent with no VAT applied.

Paul Boston, sales director at Novia, said the platform has seen increased flows into model portfolios as advisers look to outsource this part of their client proposition. 

“For the client to benefit from this professional management, it is vital the platform enables access to the first choice investment and doesn’t constrain where the manager is forced to substitute with their second best ideas.”

I would be very concerned about advisers also wanting to act as product provider by introducing their own DFM Scott Gallacher

Scott Gallacher, chartered financial planner at Rowley Turton, said: "As independent financial advisers we believe it is essential, in order to avoid any potential conflict of interest, that our role as advisers is kept distinct and separate from that of providers. 

"Consequently I would be very concerned about advisers also wanting to act as product provider by introducing their own DFM."

Mr Gallacher said he "struggled to see" how this will add additional value to clients and said he suspects it is a way of simply raising more revenue from clients.

"In this regard I’d also suggest it was against the spirit of the Retail Distribution Review."