Crunch on advisers' time
New research has found investment advisers spend less than 20% of their time making investment decisions. They spend more time dealing with things such as finding new clients, meeting current clients and doing administrative and compliance work.
Barry Read, of adviser compliance firm IDS, said advisers had to find a balance since the advent of regulation. "[The Financial Advisers Act] got everyone to stop and think what it is that they actually do and what they are good at, and what they will do going forward."
He said investment advisers tended to fit into three key moulds. The first was the type who had decided to select a provider of a product or portfolio and stick what what they offered.
The second would use a model portfolio but offer tweaks around that. And another about 20% would have their own investment committee, or do it themselves, and build bespoke portfolios for people.
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