Aberdeen MPS awarded ‘B+ Very Strong’ financial strength rating by AKG for third consecutive year

Aberdeen Adviser, provider of the UK’s second largest adviser platform by assets, has retained a ‘B+ Very Strong’ rating for financial strength for its MPS business, Aberdeen Portfolio Solutions Limited (APSL), in the latest edition of assessments by independent ratings specialist AKG.

A ‘B+’ rating from AKG identifies ‘Very Strong’ financial strength and is APLS’s third consecutive ‘B+’ rating, making it one of a handful of DFMs to achieve this level of rating three times.

AKG’s assessment of financial strength measures a company’s ability to sustain delivery of its products or services to customers.

Its analysis is based on a detailed assessment of publicly available information, supplemented by face-to-face discussions with senior management team members and the supply of additional confidential / non-confidential contextual market material. The rating reflects factors such as a business’ capital and asset strength, the strength of its management team and its ability to withstand external market forces.

As part of their assessment of overall financial strength to deliver ongoing operational capability, AKG also assessed APSL’s service, image and strategy and business performance.

Mark Hopcroft, Head of Investment Solutions and MPS business lead, at Aberdeen Adviser said; “We are pleased to have retained our B+ rating for the third consecutive year, one of the few MPS providers to have achieved this milestone. This is not only testament to the hard work we do in ensuring we manage a robust and sustainable business but also provides advisers an independent and verifiable perspective of the strength, quality, and strategic direction of the Aberdeen MPS service.

Not only is this crucial from all aspects of Consumer Duty, but we expect this to be a vital element of all advisers’ due diligence when selecting an investment partner as the FCA has announced an increase in focus and regulatory scrutiny over the next 12 months.”

AKG’s Communications Director Matt Ward added: “It is incumbent upon advice firms to carry out robust, repeatable and recordable due diligence when selecting outsourced partners such as DFMs. Consumer Duty and its core focus on ensuring all links in the distribution chain combine effectively to deliver positive customer outcomes has only accentuated this requirement. Such processes should include consideration and understanding of the entity behind the investment service and AKG’s independent financial strength ratings and reports are designed specifically to support advice firms in these endeavours.

“AKG’s assessment recognises the MPS proposition as a strategically important and growing component of Aberdeen’s Adviser business, supported by continued investment in platform integration, digital capability, marketing and service enhancement. Its financial strength is closely linked to that of the wider Aberdeen group, providing structural support as the business continues to develop.”