Prudential launches due diligence guides for advisers

The guides, from independent research companies Defaqto and AKG, focus on Prudential’s PruFund range of funds.

The guides from Defaqto cover the proposition in ISAs, bonds and pensions, while the report produced by AKG looks specifically at the structure, investment management and governance capabilities.

Each guide takes the 10 most common due diligence questions and independently provides answers to each one. It also includes the Defaqto Risk Ratings to help advisers select the most suitable PruFund for their clients.

Prudential says the guides have been published against a backdrop of increasing regulatory scrutiny following the publication of the FCA’s thematic review paper 16/1 in February this year. The paper stressed the need for advisers to ensure appropriate due diligence and research is conducted to support the recommendations given to clients.

Paul Fidell, investment specialist at Prudential, said: “We believe the onus on providing appropriate evidence to support the due diligence and research process shouldn’t rest solely with advisers.

“With the increased popularity of outsourced investment solutions among advisers and growing regulatory pressure to demonstrate the suitability of funds and products recommended to clients, product providers and platforms must play a supporting role by providing advisers with readily available access to appropriate information."