Discretionary Management  

Guide to MPS and outsourcing to a DFM

  • Explain the consequences of an adviser outsourcing to a DFM
  • Understand how to manage client risk
  • Explain how the forthcoming income rules on
CPD
Approx.60min
Guide to MPS and outsourcing to a DFM
(Nick Fewings/Unsplash)

Introduction

By Ima Jackson-Obot

Advisers have been using DFMs for a number of years, but over recent times this usage has increased, as regulatory responsibilities have increased.

But picking the right DFM that offers the right managed portfolio service is not to be taken lightly, as the adviser has many considerations to make.

This guide will explore those considerations in greater detail, such as what factors are key to selecting the right DFM, understanding how client risk is managed and how the regulatory landscape is changing.

The report is worth 60 minutes of CPD.

In this guide

CPD
Approx.60min

Please answer the six multiple choice questions below in order to bank your CPD. Multiple attempts are available until all questions are correctly answered.

  1. Which of the following is NOT a benefit associated with outsourcing to a DFM, according to Mike Morrow?

  2. True or false, Robert Vaudry says, in selecting the right DFM partner an adviser needs one that can reliably de-risks their investment activities without requiring high levels of operational input from you.

  3. According to Morrow, when an adviser is outsourcing to a DFM, what qualities should they look for in the DFM?

  4. True or false, volatility is the only reliable measurement for how risky a portfolio is, according to Tony Lawrence.

  5. Why does Robert Vaudry say it is important that advisers partner with DFMs who are not only able to display their own compliance with Consumer Duty?

  6. True or false, DFMS who are fully responsible for investment outcome reporting, can make adviser due diligence significantly less straightforward.

Nearly There…

You have successfully answered all the questions correctly, well done!

You should now know…

  • Explain the consequences of an adviser outsourcing to a DFM
  • Understand how to manage client risk
  • Explain how the forthcoming income rules on

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