Suffolk Life reports increased adviser use of multiple DFMs

Suffolk Life has noted the increase in advisers using multiple discretionary management firms on its SimSipp. The firm has been surveying the usage of its SimSipp as the product reaches its second anniversary.The single investment manager Sipp has all investments transacted by a discretionary fund manager (aside from cash in the Sipp bank account). It has no establishment fee until 2014 and an annual fee of £255 plus VAT.When the product was first launched in 2011, Suffolk Life said it expected that advisers would only use one DFM for all their clients.However, it has since seen a significant number of advisers using two or more DFMs from a choice of 17 different firms.{desktop}{/desktop}{mobile}{/mobile}The most recent DFM additions to SimSipp include Brooks Macdonald Asset Management, Deutsche Bank and Investec Wealth and Investment.Suffolk Life said this suggested that DFM selection was very much based on the individual needs of the client.Claire Trott, pensions technical manager at Suffolk Life, said: "Advisers are now looking at DFMs in more detail and there's a lot more emphasis on using the best option that suits that individual."It will happen more and more that people will work closely with two or three providers rather than having one main provider and a few secondary ones."Not only were advisers using more than one DFM, they were also regularly reviewing their DFM selection and switching clients if necessary.

Suffolk Life reports increased adviser use of multiple DFMs

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