Abbie Knight: DFM due diligence must be a two-way street

'Prepare a key insights document'

clock • 4 min read

Over recent years advisers have faced increased pressure from the regulator to undertake detailed due diligence on the Discretionary Fund Managers (DFMs) they have chosen to work with. But, asks Abbie Knight, shouldn't DFMs do the same for advice firms?

Best practice due diligence involves demonstrating the key criteria used and filtering processes adopted to support the adviser's decision making. While some feel this adds unnecessary complexity - particularly the requirement to create an audit trail - I think it makes good business sense. Rather than simply ticking a box for the regulator, due diligence should be viewed as a process that will add value to your business. If you flip your perspective, instead of a cumbersome and time consuming task, due diligence becomes a valuable investment of time and resource to mitigate business ris...

To continue reading this article...

Join Professional Adviser

  • 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

Final week to enter Gold Standard Awards 2021 for advisers and DFMs

Honouring the best in financial services

Professional Adviser
clock 16 July 2021 • 1 min read

LGIM unveils 6bps Model Portfolio Service led by Onuekwusi

Justin Onuekwusi will lead the MPS proposition

Pedro Gonçalves
clock 09 June 2021 • 2 min read

RSMR launches DFM Academy for advisers

Due diligence and selection

clock 15 June 2020 • 1 min read