Five DFMs target adviser due diligence in new taskforce


Five UK discretionary fund management firms have joined forces to educate advisers on DFMs due diligence.

The DFM Alliance, which will start free continuing professional development conferences in June across the UK, is made of representatives from Brewin Dolphin, Brooks Macdonald, Investec Wealth & Investment, Quilter Cheviot and Rathbones.

The firms collectively manage over £130bn assets.

The group says advisers need “greater clarity” around the concept of outsourcing, its benefits and what constitutes best practice.

Brewin Dolphin senior business development manager Lucie Gordon says while “outsourcing to a DFM may not be the right solution for everyone”, and that it is a “huge” burden for IFAs, the DFM Alliance would give them “information they need to make this decision.”

Investec Wealth & Investment head of intermediary services Mark Stevens says: “The formation of the DFM Alliance will help address the changing role of the adviser in recent years. Clients are looking for broader, holistic advice and are more amenable to the adviser outsourcing in order to gain access to a greater level of investment expertise.

“Managing investments is a full time job, particularly at a time when it is harder to make good returns with appropriate levels of risk.”

The main aims of the DFM Alliance are:

  • Educating advisers on the benefits of outsourcing investment management;
  • Providing a knowledge base for advisers to draw upon when undertaking DFM due diligence;
  • Working collaboratively with advisers to assist in improving business practices for the benefit of the end client;
  • Debunking the myths around working with a DFM and what it means for advisory businesses