How outsourcing investment expertise can help you grow your business

Managing investments successfully in today’s complex markets is more challenging than ever before. Identifying the opportunities, complying with the new Consumer Duty requirements and navigating the risks requires the skills and resources of a large and experienced investment manager.

In an increasingly competitive environment, financial advisers who outsource their investment decisions can enjoy the following benefits:

• Extra time. You can spend more time on financial planning work with your clients and growing your assets under management.
• Reduced risk. These include risks that come with the regulatory burdens involved with constructing and managing portfolios to meet the needs of different clients.
• Enhancing your offering. Outsourcing your advisory skills can enhance your offering through access to a wide range of investments not often available to smaller investors. For example, our specialist in-house Structured Products Team means you can offer a defensive asset class bring downside protection and enhanced defined returns. 
• Diversification. By investing across different asset classes, sectors and geographies, portfolios can reduce risk and enhance returns. 
• Stronger client relationships. It allows you to retain control of your client relationships but with the benefit of delegating investment responsibility to a specialist partner. 
• Specialist in-house research team. Not only will you have access to a dedicated local investment management team, but you and your clients will also have access to our specialist in-house Research Team. 
• Ethical and environment, social and governance (ESG) specialism. As members of Principles for Responsible Investment, the UK Stewardship Code, Climate Action 100+ and the Investor Forum, we can screen, score, report and engage with all companies we invest in on behalf of your clients.
• Enhanced adviser and client communication. Take advantage of our full research offering, ensuring you are kept up to date with what’s happening in financial markets through our expert opinions. This includes weekly communications direct to you and your clients from your Investment Management team. A sample of publications can be found here.
• Reduced investment portfolio costs. Access to specialist research in investing in direct stocks across the UK, Europe and North America. This approach reduces overall portfolio costs as well as increasing the transparency of portfolio holdings. Your clients will see exactly what companies they are invested in.
• Flexibility in investment portfolios. Bespoke management that looks to take advantage of the evolving investment landscape.
   

Why choose to work with an external partner

Research** has found there are several reasons that firms are choosing to work with an external partner to deliver their investment proposition in response to new Consumer Duty rules:

• They want to enhance the value they deliver to clients by concentrating on where they can do more to understand and meet their needs. That means reducing time spent on other tasks such as rebalancing, fund switching and reporting.
• Firms that see themselves as more planning focused rather than investment focused are separating investment performance from their adviser-client relationships.
• A good investment partnership provides access to research and resources, including in specialised areas like impact investing.
   

Consumer Duty support

The FCA’s new Consumer Duty rules mark a major change in the way financial services are regulated. They place a strong emphasis on prioritising the needs of customers and demand a cultural shift in the way financial advisers operate.

By outsourcing your investment services you will be able to easily keep up to date with the regulatory obligations and compliance expected, along with any new responsibilities on you and your firm. With the support that comes with a larger network, you can better consider how to meet regulatory requirements in the design and delivery of your services, and whether to adapt your approach.
 

The power of two

Partnering with a firm that is dedicated to investing and with extensive resources brings a powerful extra dimension to your client relationships. Investec Wealth & Investment (UK) is now part of Rathbones, making us the largest investment house in the UK with even greater access to resources.

We have a shared commitment to enhancing our proposition for financial advisers by offering them the products and services they need to look after the individuals, couples and families who rely on them for advice. Working together, we can ensure they look forward with confidence to a secure financial future.

* AssetMark, Financial Advisor Survey, 2022
** An Adviser Guide to Working Effectively with Investment Partners, NextWealth, 2023

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The information contained within this brochure does not constitute financial advice or a personal recommendation. Investors should remember that the value of investments, and the income from them, can go down as well as up and that past performance is no guarantee of future returns. You may not recover what you invest. Tax treatment depends on individual circumstances. All statements concerning tax treatment are based upon our understanding of current tax law and HMRC practise and can be subject to change.