Consumer Duty: a pre-flight checklist for multi-asset solutions

Investigations eventually revealed that the issue was not the aircraft or the pilots themselves. It was the assumption on which the cockpit had been designed: that a cockpit built for the ‘average’ would fit most pilots.

After measuring over 4000 pilots for 140 physical dimensions, the Air Force discovered that while many shared certain characteristics, no pilots matched the average across all key dimensions. No one would fit the cockpits perfectly and this was introducing risk. The solution was not to build bespoke aircraft for every pilot. Instead, manufacturers introduced adjustable seats, controls and pedals. In other words, they created optionality and adaptability within a governed framework.

The analogy remains highly relevant for advisers today. Clients have different objectives, time horizons, risk tolerances, capacity for loss, sustainability preferences and income needs. This is where optionality and adaptability become important.

Assessing multi-asset solutions: adaptability, not autopilot

The role of a multi-asset proposition is to provide advisers with a range of solutions that allow them to align portfolios more closely with individual client circumstances. Solutions should also provide optionality and adaptability. For example, using forward-looking capital market assumptions to adapt to ever-changing market conditions, while maintaining consistency of process, governance and oversight. Simply offering a ‘set and forget’ investment exposure limits the portfolio’s ability to manage risks or take advantage of opportunities.

For advisers seeking a framework for a due diligence process, Consumer Duty supports and reinforces these principles. Demonstrating good outcomes requires firms to show that products and services are designed with the needs of specific target markets in mind.

Consumer Duty: helping you navigate due diligence

Three years after the introduction of Consumer Duty, advisers have a clear framework for assessing the value delivered by investment solutions. While investment performance remains important, it is only one component of overall client outcomes. Consumer Duty encourages a broader assessment through four key outcomes: Products & Services, Price & Value, Customer Understanding and Customer Support.

Together, these outcomes provide a practical framework for evaluating whether a multi-asset solution continues to earn its place within a centralised investment proposition.

Products & Services: matching the aircraft to the mission

A multi-asset solution should be built for its target market, accommodating different client objectives, risk profiles and investment preferences.

Advisers should understand the investment approach, including asset allocation, portfolio construction, governance and risk oversight. Risk management is often a key differentiator. While risk-rated solutions provide a snapshot of risk, risk-targeted solutions are managed to keep risk within defined parameters over time. As suitability and ongoing monitoring remain under regulatory focus, understanding how risk is managed is just as important as understanding how returns are generated.  

Price & Value: making every mile count

Consumer Duty requires firms to demonstrate fair value, but value is about more than cost alone. Advisers should assess whether outcomes justify the charges paid, considering factors such as diversification, governance, risk management and portfolio oversight as well as performance. A focus on risk-adjusted outcomes can be particularly helpful. Investment journeys are rarely smooth, so consistency, downside protection and effective risk management may ultimately matter as much as long-term returns.

Customer Understanding: keeping passengers informed

Consumer Duty places strong emphasis on ensuring clients understand the investments they hold. Clients should understand a solution's objectives, risks and how success should be measured. Risk-targeted approaches can support these conversations by providing a clearer framework for discussing expected portfolio ‘behaviour’. Factsheets, market updates and educational content can help improve understanding, but the goal is genuine comprehension, not simply disclosure. Clients who understand what they own and why they own it are often better equipped to stay invested for the long term.

Customer Support: you need a reliable crew

Consumer Duty also focuses on the support available throughout the client journey. For advisers, this means access to transparent reporting, portfolio information, market commentary and investment insights that support due diligence, suitability assessments and ongoing reviews. As regulatory expectations continue to evolve, the quality of provider support is becoming an increasingly important part of delivering good client outcomes.

MyFolio: the Consumer Duty perspective

Consumer Duty has moved the focus beyond product selection to delivering good customer outcomes. The four outcomes provide a practical framework for assessing whether a multi-asset solution continues to meet client needs.

MyFolio supports all four through its risk-targeted approach, diversified portfolio range and strong governance framework. Clients benefit from a forward-looking strategic asset allocation process that adapts to market expectations, ongoing oversight and risk management. At the same time, advisers are supported with clear risk profiling, regular communications, due diligence materials and transparent reporting to help demonstrate ongoing suitability and value.

MyFolio adviser support includes: 

Together, these features support consistent and positive client outcomes to help you plan your client’s journey.

For more information on the MyFolio fund ranges visit our website, or for details about Aberdeen MPS ranges click here. Alternatively, to discuss anything related to this article, contact your Aberdeen Investments business development director.