Independent financial advisers (IFAs) could get more clarity about value for money (VFM) from their investment providers by using a simple checklist, Hymans Robertson has suggested.

Hymans Robertson Investment Services (HRIS) said that a structured checklist is one of the most “efficient and cost-effective tools” that advisers can use to get VFM information.

With no universal definition of VFM, HRIS suggested that advisers need a thorough list they can use to compare and contrast services offered by various partners.

The group said a set of clear facts would make it easier for advisers to evidence the more ambiguous elements of VFM in their compliance reports, as well as help them to analyse and demonstrate how they’re meeting the needs of their clients through their day-to-day operations.

“When thinking about VFM, while it’s natural to rely on personal impressions of the service they receive, advisers also need to be able to evidence how they’re measuring value for money to demonstrate how they’re meeting requirements on it for their clients,” head of key accounts at HRIS, Kate Rainbow, said.

“Given that there’s no single, universal definition of VFM, having a clear checklist can be a helpful tool. It allows advisers to objectively assess and compare providers, and to reflect on the quality of service they’re currently receiving.

“Even though VFM can be interpreted in different ways, there are a few widely accepted, factual elements that typically form the foundation of any assessment. These include aspects such as cost, often relative to similar services available in the wider market, returns, and, critically whether behind the scenes aspects of the service are reliably undertaken and delivered, for example, oversight, research, or monitoring of risk.”

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