■ Access: In most cases investment, whether through funds or discretionary services, is the engine that determines the success of the tax wrapper (eg pensions, bonds, ISAs). Although there is always the option to go off platform, there is a third strand to due diligence and that is tax wrapper availability. What is the tax wrapper choice on the platform? Although most tax wrappers on platforms are essentially ‘plain vanilla’ there may be occasions where the platform is right, the DFM is available but the tax wrapper just doesn’t fit the bill.

While the FCA generally looks favourably on the use of adviser platforms and outsourcing investment as it tends result in consistency of advice, advisers should bear in mind the warnings of ‘shoehorning’ and realise that this could apply to any one of platform, DFM or tax-wrapper.

Fraser Donaldson is insight analyst (investments) for Defaqto