Drumroll please…

This year we’re getting more active with our marketing and today we are thrilled to share the first instalment with you. We’ve created the following video to share on social media and get people thinking about the benefits of using third-party DFM services.

It’s a little tongue in cheek (as you will see!) and designed to highlight the difficulties of running advisory model portfolios in-house. According to recent research from the lang cat, 43% of advice firms run their own model portfolio service. And while this approach will work perfectly well for some firms, others are beginning to find it onerous and incredibly resource intensive as their business grows.

I recently saw a presentation by our friends at 7IM, outlining how the landscape has changed since the implementation of MiFID II – one of the main drivers for firms to reconsider their approach.

In order to run portfolios in-house the advice firm must:

» Consider whole of market
» Run a professional investment committee
» Ensure full evidence and disclosure for investment decision making
» Adhere to PROD regarding target market definition/client segmentation
» Seek client permission for all trades

It’s this last point that causes the most pain within a business, which you will see we’ve tried to capture in the animation.

And now for the disclaimer: we realise advice businesses come in all shapes and sizes and we’re not saying it’s ‘DFM or bust’. We’re simply trying to showcase some of the issues…

Watch the video (it’s about 5 mins long)

As always, we’re keen to hear your thoughts. Please add your comments in the space below!