In our recent adviser feedback survey advisers praised the support provided to them pre and post client recommendation.
Paul Hogg is Head of Distribution and the first point of contact for most advisers considering partnering with 8AM. Meanwhile Nicole Boeri is Head of Adviser Relationships and supports advisers on an ongoing basis. We spoke to both of them to find out how they support our adviser clients.
Paul: How do you think Consumer Duty has impacted the MPS market?
Consumer Duty’s emphasis on client outcomes and transparency has made MPS solutions (especially tailored ones) more appealing.
Paul: Why are advisers using tailored MPS rather than off the shelf solutions?
We’re seeing a surge in demand for Tailored MPS as advisers seek solutions that align with their unique methodologies and client needs.
Tailored MPS helps IFAs streamline compliance by outsourcing oversight, reporting, and risk management to DFMs, reducing regulatory burdens while maintaining alignment with client objectives
Some advisers still want to be close to the process and have a say in decision making. Being closer to the process means they feel more comfortable in explaining to clients why they are recommending this investment solution and are aware of everything going on within. It gives the clients confidence in what they are investing in.
Custom MPS allows advisers to retain control over investment decisions while leveraging DFM expertise, enhancing differentiation in a crowded market and reducing administrative burdens.
Platforum notes that tailored MPS partnerships are growing, driven by demand for “truly flexible” solutions that integrate adviser input without ceding regulatory responsibility
Nicole: What is most commonly on IFAs wish list for reporting?
Advisers are looking for something clear & concise. We always have to remember we are not the only provider they are dealing with and getting reams of information from. We need to make sure we’re delivering the exact information they need in the easiest possible format to understand. Like our Portfolio Change Report that quickly & clearly explains what changes have been made, with clear rationale as part of our ongoing review process.
Nicole: Any trends in the conversations you’re having with IFAs?
There is a lot of talk around US exceptionalism and the impact of AI on business, and its relative value in the markets. How long will the US keep growing? Is it risky to have all your eggs in one (largeish) basket? How can we apply AI within our business and within the adviser firm? Our investment colleagues keep us abreast of these subjects and we can then pass on this knowledge to our close-knit adviser community.
Paul: What are IFAs telling you about their biggest challenges currently?
Ensuring MPS solutions align with Consumer Duty’s focus on fair value and client outcomes remains a top concern.
IFAs must rigorously vet DFMs to prove portfolios meet client needs while avoiding “manufacturer” liability risks.
With 70% of advisers now using MPS in some capacity (Platforum, 2023), IFAs are also struggling to stand out, especially when going head to head for new business and using the same underlying propositions.
Tailored MPS providers and the automation of compliance reporting (e.g., cost transparency, ESG alignment) are going some way to ease these concerns.
This content is intended for financial professionals only. These are the author’s views at the time of writing and may be subject to change. This content is not intended to provide the basis for any investment advice or recommendation. Any forecasts, figures, opinions, tools, strategies, data, or investment techniques are included for information purposes only.
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