FSA identifies third option in IFA-DFM relationship

In its initial guidance consultation on centralised investment propositions (CIP), the regulator had only pointed out two broad structures firms use when working with a third party discretionary investment manager (DFM) to provide a CIP. The first involved a direct relationship between DFM and client; the second involved the advisory firm having a relationship with a DFM but also holding discretionary permissions themselves. However, it has now identified a third option in final guidance published today. This involves the firm arranging for the investment management to be carried o...