Increased regulation leads IFAs down multimanager route

The survey of more than 500 intermediaries, carried out at CSAM’s multimanager roadshow in September, claims more than a third (36%) of intermediaries choose multimanager products because of increased regulation. Toby Hogbin, head of product management at CSAM, explains regulations require advisers to justify why they selected a particular fund but outsourcing to a multimanager enables them to avoid this. Hogbin points out selecting an equity fund is very difficult and there is great potential for IFAs to choose a poor fund. He says IFAs therefore look to multimanagers to mitigate risk...