Independent financial advisers (IFAs) should prioritise governance conversations with their investment partners, Hymans Robertson Investment Services (HRIS) has urged.

The group suggested this would help them advisers understand their partners’ ability to generate both good investment outcomes and value for money, especially in a time of uncertain market director.

HRIS suggested the key areas that IFAs must explore with their model portfolio providers include their provider’s team, and that investment decisions should be made by high quality and experienced teams with clear decision-making structures in place to deliver resilience and continuity.

The group said investment strategy, including scenario testing of the strategy’s robustness also needs to be a priority to be a main driver of investment outcomes over the long-term.

Providers should also be able to show that a fit-for-purpose investment manager line up is in place, HRIS added, as this would support diversification and cost efficiency.

CIO at HRIS, William Marshall, commented: “By adopting a strong approach to governance standards, advisers can have confidence that their investment portfolios remain relevant and compliant.

“They may even benefit from the governance dividend too. This potential dividend becomes increasingly important as advisers and MPS providers face higher demand to demonstrate that their services offer value for money.

“Without understanding the impact that their partner’s governance has on their client’s outcomes many advisers could be forgiven for treating it as a tick-box exercise. But, if approached critically, advisers can achieve tangible gains for their clients with little additional effort.”

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