AJ Bell's MPS shift to 'reduce adviser risk'

Liability will rest with MPS manager

clock • 3 min read

AJ Bell has made a change that means advisers will not be held liable for the performance of the underlying holdings of its managed portfolio service.

The adviser platform and discretionary manager has updated its managed portfolio services (MPS), which encompasses active, passive, ‘pactive' and responsible MPS options, as well as its retirement portfolio service, to operate on a ‘reliance on others' (ROO) basis, meaning advisers are not responsible or liable for the investment decisions made in the underlying portfolios. The change will reduce the risk and cost for advisers as they will not be held liable for the investment decisions made in underlying portfolios.  AJ Bell's MPS previously operated on an ‘agent as client' (AAC) bas...

To continue reading this article...

Join Professional Adviser for free

  • 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 Investment

Why are so many active fund managers underperforming?

Why are so many active fund managers underperforming?

US tech stocks have dominated market performance for a long time

Laith Khalaf
clock 29 January 2025 • 5 min read
Diversification: The case for looking further afield in 2025

Diversification: The case for looking further afield in 2025

'The best gains of all could come from casting the investment net far and wide'

Sheldon MacDonald
clock 28 January 2025 • 4 min read
RGL adds further 1,500 Woodford investors to lawsuit against Hargreaves Lansdown

RGL adds further 1,500 Woodford investors to lawsuit against Hargreaves Lansdown

Total of approximately 6,600 claimants

Cristian Angeloni
clock 27 January 2025 • 2 min read