More than nine in 10 advisers (94%) expect the use of third party discretionary managed investment services to increase over the next three years, according to Investec Wealth & Investment (UK).
Advisers spoken to for the survey said the main reasons for this are a belief using DFMs will help them to offer a better service, take on more clients and meet regulatory requirements such as Consumer Duty demands.
More than nine in 10 (98%) financial advisers already use a third party bespoke discretionary managed investment service for their clients to some degree, Investec said.
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The researcher also found around two thirds (61%) of financial advisers said their use of these services has increased over the past five years. Less than a third (31%) said it has stayed the same, and less than one in eight (8%) said it has decreased over the period.
Simon Taylor, head of strategic partnerships at Investec Wealth & Investment (UK), said: “With more and more of advisers’ clients moving into retirement, the associated investment risks that come with that, along with the requirements of Consumer Duty and the FCA’s thematic review of pensions, are putting heightened pressure on advisers.
“The financial adviser and wealth management sector is increasingly finding more ways in which they can offer clients a better, more valuable service – while at the same time taking on more new clients.
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“Our research shows that more and more firms are using third party bespoke discretionary managed investment services to deliver value to clients and free up advisers’ time to take on more new clients.”
This article was originally published by our sister title, PA Adviser
