We have published articles previously about the issues around ‘Agent as Client’ (AAC) when using Discretionary Fund Management (DFM) solutions for clients.
One of the issues is that few firms, if any, have disclosure or client agreement documents that actually give firms authority to actually appoint a DFM or to do so on an agent as client basis.
Most of the time an adviser is acting in an advisory capacity. For example, in making a recommendation that the client invests in a DFM portfolio, where the DFM will take full responsibility for all suitability aspects then, from a regulatory perspective, the adviser is operating within their standard terms.
However, Agent as Client, the basis on which many platform based portfolios managed by DFMs operate, is different and authority from the client to do so is required.
There is a variation on the theme. Some DFMs agree to engage the end investor client as their retail client but are still relying on the adviser to have the authority from the client to appoint the DFM in the first place. So again the adviser needs to have this explicit authority from the client.
New Content Integration with Plannr
Doug McFarlane Suitability 2024, content management, ML, T.Bailey, transfer, Update
We are thrilled to announce that Plannr CRM has been added to our list of integration partners. Presenting a seamless integration between Plannr and ATEB suitability. Improved efficiency in creating suitability reports! Within Plannr, you can access ATEB Suitability directly through your client record and pre-populate your client data within our suitability report writing […]