Level Heads, Strong Ethics, Transparency: DPM Finanzas Aims for Leadership of the IFA Sector

‘Being properly advised is not a guarantee of success — but it reduces the likelihood of failure…’

DPM Finanzas, founded in 2013, is one of Spain´s leading independent financial advisors (IFAs) which provides financial advisory services to companies and family offices, private equity, corporates, and family businesses.

DPM prioritises clients’ interests, eliminates barriers, and creates long-lasting relationships based on trust, independence, transparency, innovation, and teamwork. The team involves itself at depth, creating a comprehensive knowledge of client needs. This allows DPM Finanzas to prepare tailor-made investment proposals in which each client fully understands the features of their investment — and the risks involved.

DPM Finanzas partner, director, and CIO Carlos Farrás Fernández was formerly head of investments at Barclays Spain. He has accumulated more than two decades of years of experience in financial markets. Partner Alfonso Valdivielso shares a similar history; he was previously head of private banking at Barclays Spain and Portugal, and boasts more than 25 years of experience in financial markets.

The institutional firm is multi-disciplined, and to cover all the needs of its customers it has become multi-service: it provides ongoing advice, financial planning, financial reports and corporate finance. It is also multi-platform — clients make decisions on bank/brokerage/insurance companies — and multi-product (financial and insurance products), multi-asset (equity, fixed income, commodities), and multi-jurisdiction.

DPM Finanzas’ only source of income is from commissions charged for services. It does not to take any rebate or commission on the investments it recommends. Clients can rest assured that there is no conflict of interest in the recommendations they receive.

DPM uses the latest in financial software, first-class reporting and digital signature protocols which allow the firm to simplify the investment processes — a primary goal. The institutional firm has signed separate financial global agreements with major Spanish and international banks and insurance companies. These provide DPM clients with access to preferred cost conditions on financing operations or investment transactions.

DPM Finanzas is proud of its team and all that it has achieved on its journey to be recognised as the best privately-owned, independent financial advisory firm in Spain. “To achieve leadership in the sector, it’s necessary to attract and retain talent. We strive to be the place where every good professional wants to develop their career.” The firm follows a simple ethos: “Being properly advised is not a guarantee of success — but it reduces the likelihood of failure.”

In addition to a specialised and trusted senior team, one of DPM’s main strengths is the shared belief in transparency in all aspects of financial advice.

In Spain, independent financial advice is still in its infancy, says Farrás, “although it is increasingly in demand among high-net-worth individuals”. The sector is constantly changing. “Regulation in Europe is pushing for fee-only financial services, recognising the figure of independent financial advice and the obligation to report all implicit commissions of the products.

“The actual regulation is making the execution of the advisory service more complex. We try to ‘make the complex simple’ for our clients.” The financial sector is undergoing a strong transformation and concentration as a result of economies-of-scale and increased regulation, he adds. “But we see a clear growth opportunity for specialised boutiques like ours.”

DPM has clearly identified its niche and differentiated its services. It is currently collecting ESG preferences in a customer-suitability test. “We plan to use ESG scores in our portfolio reports,” says Farrás. “We have been incorporating these criteria in both our investment process and the selection of funds or assets.”

The firm’s ethical stance is clear. “We live honestly in the financial sector thanks to our independence, the absence of conflicts of interest, and total transparency with the client. We provide financial advice as we would like it to be provided to us.”

The business model is based on trust and helping clients achieve their goals, so all management decisions are based on both targets. Farrás states that “High-net-worth clients have complex needs, so our support team must make their lives and operations easier.”

“As a corporate leader you have a responsibility to customers, employees, the regulator, suppliers and society,” says Farrás. “That’s why we vow, every day, not to fail the trust that has been placed in us.”