View more on these topics

Brooks Macdonald in-house advice a ‘major introducer’ of funds into DFM

Discretionary fund manager Brooks Macdonald has said that its in-house financial planning business remains a “major introducer” of funds into its investment solutions.

Brooks offers independent, whole of market financial advice, along with managed portfolio services, multi-asset model portfolios, and bespoke investment options.

In Brooks’ annual results released this morning, it says it is committed to “robustly managing any perceived channel conflict”, but notes that the financial planning division “remains a major introducer of new investment management funds to the investment management segment of the group”.

The FCA asset management market study noted the potential for conflicts of interest to arise when advisers are recommending funds at related companies.

Brooks’ financial planning business made a £5,000 loss during the year, compared to a slight profit of £300,000 in the 2017 financial year.

The firm says it expects demand for financial planning to grow as a temporary downturn in defined benefit transfer activity fades away.

The results statement reads: “In line with the industry we have seen a reduction in demand for defined benefit transfers in recent months as the sector adjusts to the servicing and suitability assessment demands of the product.  However, although not reaching the highs of recent years, we expect this to improve over time, given the ongoing and growing need for individuals to seek financial planning advice before and through retirement.”

It also expects its discretionary propositions to become more popular as more planners look to outsource the investment process, and will conduct a “review of how we best serve our major strategic adviser partners.”

The results say: “The level of penetration of the adviser community by discretionary fund managers remains low and we are confident that regulatory and commercial trends mean that the flow of firms looking to outsource investment management will remain strong.”



Auto-enrolment arrives but is it a done deal for small firms?

When business secretary Vince Cable told the Liberal Democrat party conference he had defeated the Tory “headbangers” who “find sacking people an aphrodisiac”, there was little doubt who he was thinking of – Adrian Beecroft. The Beecroft report, which was commissioned by the Government and published in October last year, contains a series of radical […]

Focusing on money - Magnifying glass over British pound notes.

Investment fraud ringleader jailed over boiler room scam

A fraudster described as the “controlling mind” of a series of boiler room scams that lost investors more than £2.8m was sentenced to 11 years’ imprisonment on Friday. Michael Nascimento was called the “instigator and the main beneficiary” of the fraud. His sentencing follows the sentencing of five other people involved in the same fraud […]


How much are advisers charging for pension transfers?

Defined benefit pension transfer charges are being put under the microscope again as the regulator turns over more potential conflicts of interest. With the British Steel Pension Scheme the latest to dominate headlines and the FCA ready to interrogate further as it extends its review to include all firms authorised to give pension transfer advice, […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm