Defaqto has launched independent Consumer Duty profiles for the top 20 most frequently recommended discretionary MPS portfolios.
These are now available in Defaqto Engage and Centra software with the initial 20 profiles covering a number of MPS providers including Brooks Macdonald, Quilter and RBC Brewin Dolphin.
Advisers will be able to compare products, funds or DFM portfolios in a peer group on the same basis using the same data.
As well as report on the target market of the product in question and also understand who is not the target market.
The profiles will also make understanding whether a product offers fair value, or assessment of the value of a fund/DFM portfolio much easier by providing a comparison of key benchmarks to the product or fund’s peer group.
To read more on this topic, visit: Defaqto CEO Q&A: ‘AI provides a world of opportunity’
Andy Parsons, insight manager (Funds & DFM) at Defaqto, said: “These profiles will provide enhanced due diligence for an adviser, and complement the documents available from asset managers.
“Each of our Consumer Duty profiles is a 2-page document, structured around the four key outcomes the FCA set out in the rules and guidance: namely ‘products and services’, ‘price and value’, ‘consumer understanding’ and ‘consumer support’.
“Where the data can be clearly compared to other propositions, we have calculated the average for the relevant risk band within Defaqto Engage to clearly show whether it has out/unperformed, takes more risk, is cheaper or more expensive, and if economies of scale are being passed on to the end investor.”
