Clarity on where the adviser's responsibility ends and where the discretionary investment manager's (DIM) begins is crucial, yet advisers still fail to seek it, consultant David Gurr has warned.
Speaking at PortfolioMetrix's ‘The Mix Forum' conference, the Diminmis founder argued advisers needed to ensure they were clear about what they are responsible for in their agreement with the DIM, as in the end they were the ones carrying the risk. Gurr said he recently conducted research that found 28 of the 30 DIM representatives he spoke to did not correctly articulate the legal and regulatory basis on which they offered their services to the adviser. What's more, at a seminar last year Gurr said a mere two of 160 advisers said they had read their intermediary terms of agreement wi...
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