Four in five advisers use centralised investment propositions


Nearly four in five advisers are placing clients’ funds in a centralised investment proposition, a new survey shows.

A survey of 141 advisers Equifax Touchstone shows 82 per cent used centralised investment processes, at a time when the FCA continues to keep a watchful eye over suitability requirements.

The survey also finds that the use of model portfolios usually varies with the size of a firm.

In firms with less than five advisers, 66 per cent of them will use model portfolios, while in firms with over 50 advisers, the percentage increases to 83 per cent.

Overall, 76 per cent of the advisers surveyed use model portfolios, with 70 per cent using them for more than a half of the investments they make.

Recent analysis of the pros and cons for advisers of getting the permissions to invest in-house found that, for many, it is easier said than done.

However, commenting on the survey, Equifax Touchstone director John Driscoll says there is an ongoing shift to “a more structured” investment process that is putting CIPs at the core of IFAs work.

He says: “This approach helps strike the right balance between risk and return, particularly important in a world of increased market volatility.

“The FCA is very focused on the quality of advice that investors receive, and stamping out unsuitable advice is a priority. Being able to demonstrate that investment risk is managed, monitored and maintained to the appropriate level for the client is an important part of this. With the rebalancing and documented investment process at the heart of investment advice, investors can access a more consistent approach to investment.”