The firm’s new Transmission tool provides a way for IFAs to request independently compiled performance data from DFMs on transactions and holdings.
According to FE, four DFMs have already signed up to the service: Rowan Dartington Signature, Thesis Asset Management, Vestra Wealth and London & Capital, while there are another three in the immediate pipeline.
The move comes amid a growing call for increased transparency of everything from costs to holdings from the DFM sector, as the regulatory burden on IFAs continues to rise – in particular, a need to be able to demonstrate that sufficient due diligence has been done.
Mika-John Southworth a director at FE said as a reason for the development of the tool: “An ever increasing number of advisers are turning to outsourced solutions for their clients and it is vital the DFM and adviser are able to communicate efficiently to ensure the end client receives the best possible outcome.”
Rowan Dartington Signature MD, Guy Stephens, said: “This new service will not only get under the bonnet but also allow the IFA to rate services on whichever criteria he considers to be the most relevant to his business or client circumstances.”
According to FE, DFMs will have the opportunity, through its new DFM Directory, to publicly display communications and marketing information, while “Simple “contact me” buttons will send leads directly to DFMs”.
It also allows for “data automation, document management and communications, admin and a dedicated DFM directory for advisers,” the firm said.
The new product comes a few weeks after STEP, in association with Enhance, launched a tool for wealth managers to better monitor their own investment service providers.
Clive Waller, founder of CWC Research said the move was another step in the right directon.
“Where we are hoping this will lead is to a situation where DFMs will realize the need to provide clients with their data. Ultimately, you want to get to a situation whereby you can compare model portfolios in the same way as you do funds.”
