The adviser shift to working with discretionary MPS providers continues to accelerate. Whereas some firms may be content with off-the-shelf or ready-made solutions that have been designed for a generic target market, a growing number of adviser firms are commissioning strategies that are designed for their firm-specific target market and their end-clients’ needs, characteristics and objectives.
This “custom” model portfolio approach aligns product manufacturing to end-client needs and is welcome.
With the rising focus on consumer duty, ensuring the roles and responsibilities between managers and advisers are and remain clearly delineated is essential for categorising respective status in the manufacturing process.
Co-manufacturing per se need not increase business risk. But leaving arrangements between advisers and managers undocumented will.
Henry Cobbe is head of research at Elston Consulting
