But as Ms Beard states, for many advisers now, the issue is no longer about picking a fund for a client’s portfolio, but for creating a solution, such as a long-term investment plan or a retirement portfolio.
Whether Mifid II goes far enough to making sure product providers really are ensuring their funds are right for that solution is another question entirely.
As Morningstar’s Ms Beard comments: “In the US, they are very hands-on with regulation whereas in Europe it tends to be about interpretation and how various jurisdictions choose to implement directives.
“The Financial Conduct Authority has provided some guidelines which I think is an interpretation that makes sense and is useful.
“This way, advisers can focus on the quality of a product and its value for money.”
Simoney Kyriakou is content plus editor for FTAdviser
