Charles Stanley's Paris Jordan: Managers could be left behind by SDR

Several challenges to overcome

clock • 4 min read

The Financial Conduct Authority has finally come out with its long-awaited SDR consultation paper, which has been highly anticipated by DFM's and MPS providers, as it will have a great impact on the wealth management industry.

Indeed, it is possible that the aim of encouraging sustainable investing and minimising greenwashing could be compromised. Firstly, starting with the positives, the FCA has proposed to extend the labelling regime to CIPs, including Model Portfolio Services, which aligns the proposal of labelling products as per the first SDR paper. This now brings DFM's who provide MPS and multi-asset solutions to financial advisers back in line and levels the playing field between solutions which were unitised(/funds) and model portfolios. Where some firms ran both, there were concerns that, despi...

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