DFMs enhance adviser due diligence ahead of Consumer Duty

DFMs say advisers offering co-branded MPS are co-manufacturers

Sahar Nazir
clock • 1 min read

More than one-third (36%) of discretionary fund managers (DFMs) have enhanced their due diligence process conducted on advice firms as a result of Consumer Duty.

This is according to NextWealth's latest managed portfolio service (MPS) proposition comparison report for June 2023, which includes data from 14 DFMs. The majority (93%) of DFMs have completed a fair value assessment in the last 12 months and NextWealth said most thought advisers offering tailored or co-branded MPS are co-manufacturers under new Consumer Duty rules. Managing director Heather Hopkins said: "Financial advisers are manufacturers of an advice service under Consumer Duty rules but there is a lot of confusion about who is a co-manufacturer of the investment proposition. ...

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