Advisers are split over whether DFM fees represent good value for money with 42 per cent arguing they do not, according to a Money Marketing poll.
38 per cent of advisers believe DFM fees are good value for money, but a fifth of respondents remain unsure.
The FCA is currently looking at DFMs’ role in the value chain as part of its asset management study to see whether the extra costs to investors are justified.
Money Marketing reported in September that more advisers are looking to bring investments in-house as 11 per cent of IFAs plan to get discretionary permissions in the next five years, according to Platforum data.
Increasing competition from new entrants like direct-to-consumer platforms such as Interactive Investor are set to drive DFM fee competition. II announced in June that it was planning to introduce a DFM service following its acquisition by TD Direct.
The poll was conducted in December with over 100 readers responding.