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...

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