Advisers partner with fewer DFMs post-Consumer Duty

Advisers work with an average of 1.7 DFMs, down from 2.2 last year

Sahar Nazir
clock • 1 min read

Financial advisers are partnering with fewer discretionary fund managers (DFMs), according to NextWealth’s MPS Proposition Comparison Report 2023.

Advisers work with an average of 1.7 DFMs, down from 2.2 last year. The number has steadily decreased and fell "rapidly" this year from an average of 2.2 to 1.7. The report, which was conducted among 240 financial professionals and 41 DFMs, suggested that the number of DFMs that advisers work with continues to fall and this trend has accelerated with the introduction of the Financial Conduct Authority's Consumer Duty regulation. NextWealth said that DFMs believe Consumer Duty is "accelerating the shift to outsourcing but that co-manufacturing rules mean that most advice firms are opti...

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 Your profession

A twenty-year industry retrospective from RSMR's Ken Rayner

A twenty-year industry retrospective from RSMR's Ken Rayner

'The only constant in life is change'

Ken Rayner
clock 27 November 2024 • 4 min read
Majority of advisers offboarding more clients than usual

Majority of advisers offboarding more clients than usual

Advisers expect offboarding to increase in next 12 months

Sahar Nazir
clock 27 November 2024 • 1 min read
PA Awards 2025: Provider shortlists revealed!

PA Awards 2025: Provider shortlists revealed!

Recognising the best in multi-asset and MPS investing, paraplanning, Consumer Duty, and more...

Professional Adviser
clock 27 November 2024 • 2 min read