Advisers partner with fewer DFMs post-Consumer Duty

Advisers work with an average of 1.7 DFMs, down from 2.2 last year

Sahar Nazir
clock • 1 min read

Financial advisers are partnering with fewer discretionary fund managers (DFMs), according to NextWealth’s MPS Proposition Comparison Report 2023.

Advisers work with an average of 1.7 DFMs, down from 2.2 last year. The number has steadily decreased and fell "rapidly" this year from an average of 2.2 to 1.7. The report, which was conducted among 240 financial professionals and 41 DFMs, suggested that the number of DFMs that advisers work with continues to fall and this trend has accelerated with the introduction of the Financial Conduct Authority's Consumer Duty regulation. NextWealth said that DFMs believe Consumer Duty is "accelerating the shift to outsourcing but that co-manufacturing rules mean that most advice firms are opti...

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