PFS concerned advisers working under 'inadequate' discretionary terms

Pointing to research undertaken in association with due diligence consultancy Diminimis last year, which found one in five advisers had never reviewed their existing DIM relationship, the trade body called advisers to revisit what they had signed up to. To this end, the PFS and Diminimis have produced a ‘best practice' guide for advisers to help them verify their ‘agent as client' terms. Discretionary agreements often treat an adviser as the '(professional) client' of the DIM, the PFS explained, and thus acting as authorised agent of the underlying investor. It warned, however, tha...