The number of advisers using discretionary management services will increase in the coming years according to financial researcher Defaqto.
In 2013 Defaqto found that 45% of advisers were outsourcing their investment propositions. Of that 45%, more than half (51%) were doing so via discretionary management services.
Researchers said with the growing popularity of outsourcing among advisers showing no sign of slowing down, they predict the total number of advisers utilising the services of a discretionary fund manager will also increase throughout 2014.
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Fraser Donaldson, Defaqto's insight analyst for wealth management, said:"One of the biggest consequences of the Retail Distribution Review has been the number of advisers who have already, or are now looking to outsource their investment propositions.
"Defaqto's last survey on the subject indicated an increase in the proportion of advisers who are outsourcing their investment proposition. Activity we have witnessed leads us to believe that this figure continues to increase.
"Discretionary fund management is still relatively new to large segments of the adviser market. As demand and interest continue to increase, so the solutions available continue to evolve and innovate.
"The choices and options within the market are already very different to what they were just three or four years ago so it is important for advisers to keep abreast of how this market is developing."