Managed portfolio services – market update 2015 by Defaqto

27 April 2015

Discretionary solutions are now an important part of an adviser’s toolkit. We’ve launched this managed portfolio services (MPS) market update to give you a comprehensive overview of the space, including compliance challenges and business opportunities.

The purpose of MPS

MPS provide an adviser client with a portfolio of segregated holdings where all clients in a particular profile receive exactly the same portfolios (formula-based). Crucially, they are traded and adjusted, with a discretionary agreement in place, by the discretionary managers.

MPS and compliance

Generally speaking, the regulator has a positive view of MPS solutions in an adviser’s armoury. The FCA has, however, raised concerns around advisers potentially viewing these solutions as a 'one-size-fits-all' option, rather than a proposition that will lead to consistency of advice and a standardisation of approach.

The key learning objectives of this CPD-accredited guide are:

The need to undertake meaningful due diligence in the discretionary market
The FCA guidance on good due diligence in constructing a CIP
The factors that ought to be considered and investigated, in making a final decision to reduce the universe of propositions for selection