Defaqto unveils Consumer Duty profiles for top 20 model portfolios

investmentweek.co.uk:

The profiles, now available in Defaqto’s Engage and Centra software tools, are designed to help financial advisers meet their regulatory needs as part of the Financial Conduct Authority’s Consumer Duty.

The initial 20 discretionary MPS reports cover a number of popular MPS providers, such as Brooks Macdonald, Quilter, RBC Brewin Dolphin, Tatton, Timeline and Waverton, providing an «independent and unbiased» profiling of their propositions, Defaqto said.

Consumer Duty profiles allow advisers to compare products, funds, or DFM portfolios in a peer group on the same basis using the same data. 

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Using these documents, advisers will be able to report on the target market of the product in question and understand who is not the target market. 

According to Defaqto, the profiles will also make understanding whether a product offers fair value, or assessment of the value of a fund or DFM portfolio, easier by providing a comparison of key benchmarks to the product or fund's peer group.

The profiles, now available in Defaqto's Engage and Centra software tools, are designed to help financial advisers meet their regulatory needs as part of the Financial Conduct Authority's Consumer Duty, the firm said.

Andy Parsons, insight manager for funds and DFM at Defaqto, said the profiles will provide «enhanced» due diligence for an adviser, and complement the documents available from asset managers.

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«Each of our Consumer Duty profiles is a two-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'