Research by the firm found that 51 per cent of advisers are already outsourcing some or all of their investment process.

Some 26 per cent are outsourcing their work to a discretionary manager and this is now the most common outsourcing route for platform users.

Once the RDR is implemented, the new definition of whole of market advice will mean advisers’ choice of outsourcing business becomes even more important.

This in turn means DFMs will need to offer flexibility on their investments to stand out from the crowd.

This should involve giving advisers access to an appropriate range of investment types to help advisers make their selection decisions.

Defaqto found while 93 per cent of DFMs were offering direct investment in cash and 60 per cent offering equities, the figures were much lower for alternative investments.

Only 42 per cent were offering direct investment in commodities and 38 per cent offering private equity.

Fraser Donaldson, Defaqto’s insight analyst for funds, said: “The RDR has meant that most, if not all, adviser businesses are reviewing their strategies in preparation for 2013-and many will conclude delegating investment decisions to a full-time investment specialist will be in the best interests of their clients.

“The flip side is that DFMs will need to ensure they appeal to advisers, and an understanding of what other DFMs are offering will be crucial to help them benchmark, shape and promote their service accordingly.”