Financial strength: More than a nice to have
Aberdeen MPS’ Mark Hopcroft highlights why financial strength should be central to advisers’ due diligence process
Duration: 3 Mins
Date: 07 Jan 2026
In today’s environment, selecting the right MPS providers goes beyond performance and investment philosophy. Financial strength is the foundation that underpins stability, client security, and long-term confidence. For advisers, this shouldn’t be just a consideration, it’s a responsibility. Incorporating financial resilience into your due diligence process helps reduce risk and safeguard both your clients’ interest and your professional reputation.
Why financial strength matters
While not always the most visible aspect of an MPS proposition, financial strength provides a solid foundation on which everything else rests for a number of reasons:
- Stability and longevity: A financially robust provider can sustain operations and help deliver consistent service through market volatility and economic uncertainty. This stability helps ensure continuity of portfolio management and support, even during challenging periods.
- Risk mitigation: Financial distress at a provider can have serious implications for advisers and their clients. Strong financial health significantly reduces the risk, offering reassurance that the provider is equipped to meet obligations and navigate market shocks.
- Investment in innovation: Financial strength enables providers to invest in technology, research and product development. These investments can support better tools, enhanced reporting, and innovative solutions designed to help advisers operate efficiently and meeting evolving client needs.
- Regulatory compliance: Adapting to changing regulatory requirements demands resource. A well capitalised provider is better positioned to absorb unexpected costs and maintain compliance, helping advisers and clients remain protected.
- Confidence and trust: Financially strong and robust investment and financial markets are the foundation stone of a developed economy and society, and critical to societal well-being. Central to supporting and managing this is a transparency and confidence in financial institutions.
Aberdeen MPS: A trusted partner
We’re proud that Aberdeen MPS has retained a rating of ‘B+, Very Strong’ for overall financial strength by independent assessment specialist, AKG. Retaining this rating for a third consecutive year reflects our commitment to continually invest in our MPS proposition and improve the service and value we deliver.
Financial strength is not just a ‘nice to have’, it’s a critical factor when selecting an investment partner. Not only is this essential from a Consumer Duty perspective, but with the FCA signalling increased focus and regulatory scrutiny over the next 12 months, it should be a core element of every adviser’s due diligence. Doing so helps to safeguard client outcomes and protect your reputation.
Take a look at AKG’s full assessment report for Aberdeen Portfolio Solutions Limited.
Find out more about how Aberdeen MPS can support your adviser firm.
Past performance does not predict future returns. The value of investments, and the income from them, can go down as well as up and clients may get back less than the amount invested.
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