Warnings of platform 'crunch' as MPS usage increases

‘This is something that the regulator should be looking at more’

Isabel Baxter
clock • 2 min read

The expected growth of model portfolio services (MPS) could cause a “crunch” for the platforms on which they run, according to Equisoft.

The "crunch" warning comes as 69% of 500 UK-based financial advisers expect to have more assets under management (AUM) in MPS in future, the digital provider's Transforming Investment Management: The Rise and Risks of Model Portfolio Services report found. More than half of advisers (51%) now use MPS for more than half of their clients, with regulation, cost (40%) and choice the key factors in their decision-making, it also found. "It remains an invaluable investment solution for advisers struggling with rising regulatory demands and complex markets," the report stated. The researc...

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 DFM & Model Portfolios

7IM broadens income‑focused model portfolios

7IM broadens income‑focused model portfolios

As advisers ‘rethink income, tax and retirement needs’

Jenna Brown
clock 21 April 2026 • 2 min read
MPS on platforms still causing adviser pain points

MPS on platforms still causing adviser pain points

CGT optimisation, cash management, reporting noise cited as issues

Isabel Baxter
clock 20 April 2026 • 3 min read
Bridge Investment Intelligence launches 'first-of-its-kind' MPS research tool

Bridge Investment Intelligence launches 'first-of-its-kind' MPS research tool

Tool aims to tackle “crowded and complex” market

Sophia Panayi
clock 13 April 2026 • 3 min read