The newly-introduced MiFID II regulation will encourage many advisers using their firm's own model portfolio service (MPS) to switch to a discretionary offering, broker Zeus Capital has predicted.
According to research by the lang cat, which was commissioned by Tatton Asset Management, approaching two-thirds (62%) of IFAs use a model portfolio service. Of the IFAs who used an MPS, two-thirds used their own MPS and the other third used a discretionary fund manager's (DFM) offering. Zeus Capital said it expected the second Markets in Financial Instruments Directive (MiFID II) requirements, which came into effect on 3 January, to encourage more IFAs to switch to a DFM offering. The broker cited additional pressures under MiFID II, such as the management of conflicts of interests, ...
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