DFMs under pressure over portfolio charges as FCA mulls review

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Discretionary fund managers (DFMs) are facing growing pressures to standardise managed portfolio fees as the Financial Conduct Authority (FCA) considers warning advisers against using any service where costs are not clear.

The regulator is understood to be reviewing its suitability guidance with a view to publishing a full thematic review into adviser due diligence. As part of this, the regulator is expected to touch upon the difficulties for advisers when comparing DFM performance. In particular, the widespread practice of DFMs quoting performance gross of fees could fall foul of general guidance from the regulator around fee disclosure, something which may bring discretionary portfolios in line with the funds industry. All UCITS funds are required to quote net performance – which excludes their own fe...

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