Why MPS providers must embrace automation before the FCA's Multi-Firm Review demands it

The Financial Conduct Authority's (FCA) recent focus on model portfolio services (MPS), including in the new Regulatory Priority reports, December's DP25/3 discussion paper, and the Consumer Duty Multi-Firm Review, signals a clear direction of travel. MPS providers are likely to face a more stringent regulatory environment and although the FCA has repeatedly stated that it does not want to hinder innovation, the operational implications for MPS firms are significant. One area under discussion is the potential alignment of disclosure expectations between authorised funds and MPS. I...