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...

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