The Edge of Chaos - The Competitive Advantage of Achieving Intended Outcomes

Financial Advisory

27 April 2023

AdvisorsCIPFinancial AdvisoryMeeting of MindsOutsourcingPlatform providersvalue

Expert: Symon Stickney, Collidr Facilitator: Dan Russell


  1. Firms have very different views about what adds value or is perceived as valuable by customers
  2. Those outsourcing the majority of their CIP were content that client value was driven by the advice process, with interchangeable suppliers
  3. Those with DFM permissions, or a closer involvement in the execution of advisory portfolios, believe their clients are with them for their oversight and control of investment portfolios

Discussion points:

Firms view their CIP very differently. Some firms very clearly see their CIP as a product, others as a service.

The level of involvement in CIP design and execution varied dramatically, from those building everything from scratch (including asset allocation) to those outsourcing everything.

There was little use of fund of funds solutions, with Discretionary MPS the preferred option where firms were not running their own advisory or discretionary portfolios.

“The risk of getting it wrong is a big worry”. Moreso for the firms running most of the CIP themselves, there is continuous concern about the strength of the process, and a desire to know what more they could be doing.

Regardless of the CIP approach used, most delegates expressed a concern about the time involved in managing CIP processes, and the desire for easier and more efficient client communication.

“Digital isn’t replacing the adviser any time soon”. Whilst many firms expressed a desire to have better digital client engagement, for many it was still the adviser who would be the primary contact point.

Digital fact finds were seen as a positive in streamlining processes, but the outcomes of data collection and the ongoing review was seen as a very human activity, especially for those wanting advice.

Key takeaways:

“The future involves better reporting and greater flexibility”. Key desires for future CIP developments include:

  • Better client reporting
  • Outsourcing more functions
  • Being able to change DFM supplier more easily
  • Being able to change platform supplier more easily
  • Creating OEIC versions of portfolios, especially given CGT changes