Cost and consistency: The role of MPS post-Consumer Duty

Nearly half of advisers use a third-party DFM

clock • 4 min read

Laura Miller explores the growing MPS sector and delves into how Consumer Duty has affected the competitive marketplace...

Adviser adoption of model portfolio services (MPS) is high. Nearly half of advisers use a third-party discretionary fund manager (DFM) for at least some of their clients, according to the July 2023 UK Wealth Management report from Platforum. DFMs now run about a fifth of adviser platform assets, in excess of £100bn, overtaking bespoke portfolios managed by wealth managers for advisers. This takeover by MPS dovetails with a new direction for adviser regulation. The Financial Conduct Authority's (FCA) Consumer Duty, in force since July, means advisers who continue to manage client portf...

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