DFMs under pressure over portfolio charges as FCA considers review

clock • 3 min read

Discretionary fund managers are facing growing pressure to standardise managed portfolio fees as the FCA considers warning advisers against using any service where costs are not clear.

The regulator is understood to be reviewing its suitability guidance with a view to publishing a full thematic review into adviser due diligence. As part of this, the FCA is expected to touch upon the difficulties for advisers when comparing DFM performance. In particular, the widespread practice of DFMs quoting performance gross of fees could fall foul of general guidance from the regulator around fee disclosure, something which may bring discretionary portfolios in line with the fund industry. All UCITS funds are required to quote net performance – which excludes their own fees and ...

To continue reading this article...

Join Investment Week for free

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now

 

Already an Investment Week
member?

Login

More on Investment

Event Voice: Stepping out of cash into the Credit Sweet Spot

Event Voice: Stepping out of cash into the Credit Sweet Spot

Peter Marsland, Fixed Income Investment Specialist, from Aberdeen discusses the Short Dated Enhanced Income Fund at the June Fixed Income Market Focus.

Peter Marsland, Fixed Income Investment Specialist
clock 08 July 2025 • 4 min read
Investors undergo 'buyers' strike' in June sending order values to two year low

Investors undergo 'buyers' strike' in June sending order values to two year low

Middle East conflict did not deter investors

Eve Maddock-Jones
clock 08 July 2025 • 2 min read
The big questions around re-evaluating risk for the retail investment industry

The big questions around re-evaluating risk for the retail investment industry

Discussions at Global Investment Management Summit

Katrina Lloyd
clock 08 July 2025 • 8 min read
Trustpilot