AJ Bell's MPS shift to 'reduce adviser risk'

Liability will rest with MPS manager

clock • 3 min read

AJ Bell has made a change that means advisers will not be held liable for the performance of the underlying holdings of its managed portfolio service.

The adviser platform and discretionary manager has updated its managed portfolio services (MPS), which encompasses active, passive, ‘pactive' and responsible MPS options, as well as its retirement portfolio service, to operate on a ‘reliance on others' (ROO) basis, meaning advisers are not responsible or liable for the investment decisions made in the underlying portfolios. The change will reduce the risk and cost for advisers as they will not be held liable for the investment decisions made in underlying portfolios.  AJ Bell's MPS previously operated on an ‘agent as client' (AAC) bas...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Investment

Future of Investment Festival: Our specialist sessions for advisers

Future of Investment Festival: Our specialist sessions for advisers

Future-proofing advice, building sustainable portfolios, all things SDR

Professional Adviser
clock 19 April 2024 • 2 min read
Why non-transparent managers are behind most failed acquisitions

Why non-transparent managers are behind most failed acquisitions

‘They don’t understand the importance of culture and cohesion’

Rami Cassis
clock 12 April 2024 • 3 min read
Partner Insight: Understanding the investment universe

Partner Insight: Understanding the investment universe

Invesco
clock 12 April 2024 • 6 min read