• Performance histories (e.g. risk vs return)

• Key personnel, their experience (by investment and client type) and qualifications

• Research levels available to firm

• Investment process and regulatory framework

• Assets employed

• Investment vehicles used

• Administration and custodian arrangements

• Investment targets and benchmarks

• Minimum investment amounts

• Third-party relationships and product offers

• Reporting and service arrangements

• Charges/fees

• Clarifying exactly where investment responsibilities lie

A reminder of what the regulator requires

The Financial Conduct Authority requires that advisers’ service propositions are suitable, fit for purpose and offering fair value for money. In order to justify that a suitable product or fund has been selected, advisers need to be able to demonstrate that they have given due consideration to every product or fund available in the market which may match the client’s requirements.

David Cartwright is head of insight at Defaqto.

For more information on outsourcing, download Defaqto’s CPD-accredited guide to outsourced investment solutions and financial advisers can also pre-register for the firm’s exclusive DFM Conference.