The Financial Conduct Authority's (FCA) upcoming review of model portfolio solutions (MPS) and how they are meeting the Consumer Duty criteria has been labelled by some as "overdue", with the market having grown significantly.
The watchdog confirmed last week (26 February) that it will this year start a multi-firm review of MPS looking at how firms are applying Consumer Duty, to "provide confidence that investors are receiving good outcomes from MPS and share good practice on how firms are doing this". The MPS arena is a busy one and some have labelled it overcrowded. Equisoft has even warned that the expected growth of MPS could cause a "crunch" for the platforms on which they run. There has been a 100% increase in number of MPS portfolios over the last six years, according to research house Defaqto analys...
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