That was the conclusion of researchers following a survey. They found advisers were turning to DFMs to assist with managing clients' assets.

The FE poll showed only 35 per cent of the advisers surveyed use between two and four model portfolio service providers, while 13 per cent used model portfolio options from more than five providers.

One of the key reasons given for why so few used multiple providers when comparing portfolios, advisers reported back that a lack of transparency and sufficient holdings information made comparing multiple providers difficult and extremely time-consuming.

Mika-John Southworth, director at FE, said the DFM market continues to come under fire for lack of transparency and openness, citing a report published recently on the industry also highlighting the need for change to promote transparency and highlighting the growing need for DFM model portfolio comparison tools.

He said: “The DFM industry remains open to criticism about its opaqueness, although there is a growing recognition amongst the most customer facing DFMs regarding the need for greater transparency.

“The launch of our campaign based around DFM data in FE Analytics last year, has started to close the gap, but there is much more that needs to be done, and there is a need for more urgency – ultimately it is the end consumer who is going to suffer otherwise.

“With 16 of the UK’s main model providers now actively and openly sharing their data and underlying holdings information with advisers, they are really leading the way in terms of championing transparency. There is still more to be done in the wider context however – between 10% and 14% of unit trusts and OEICs still don’t report an OCF or TER on FE Analytics.”

Mr Southworth said: “With nearly 70% of the adviser marketplace (according to our recent survey) using a third party model portfolio provider for part of their proposition, it remains a competitive marketplace for DFMs and model providers in which differentiating their proposition and demonstrating value to IFAs becomes more and more important.

“Gone are the days when providers can get away with a lack of transparency and information provision in support of advisers, who need to demonstrate robust research and client suitability to the regulator.”