almost half of advisers now use dfms

One third of advisers are planning to increase the number of client portfolios held on platforms as a result of RDR, research conducted by Investec Wealth & Investment (IW&I) found.

almost half of advisers now use dfms

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At present, IFAs outsource around 11% of client investments via a platform and use an average of three platforms, the report shows.

The number of advisers planning to use discretionary fund managers (DFMs) is also set to increase, with 10% of those not already outsourcing to DFMs planning to do so.

At present 47% use DFMs to assist with their clients investments. Of these investors, 20% plan to increase the number of portfolios they outsource.

Delegation of the day-to-day management process is the number one reason IFAs are looking to switch to DFMs, with 89% citing this as a motivating factor. Gaining access to an investment professional and reducing the administrative burden were also cited as reasons by 82% and 73% of those participating in the study respectively.

The news comes as a report released earlier in the week revealed that more than half of IFAs anticipate an increase in demand for advice this year as a result of the RDR.

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