MiFID II could end 'risky' adviser/discretionary operating model

Advisers must push for change - PortfolioMetrix

clock • 2 min read

MiFID II should improve the operating model between advisers and discretionary investment managers and spell out "who carries the can" should a client complain, according to PortfolioMetrix.

The firm said the second round of Markets in Financial Instruments Directive regulation (MiFID II), which is due to come into force on 3 January, would enhance the way advisers and investment managers work alongside each other but it was up to advisers to "lobby for change" as adopting a different operating model was not mandatory. The discretionary investment management business explained at present 90% of advisers using model portfolios on platforms supplied by discretionary investment firms are operating under an ‘agent as client' framework. It said this approach addressed the key ...

To continue reading this article...

Join Professional Adviser

  • Unlimited access to real-time news, industry insights and market intelligence.
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters.
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection.
  • Members-only access to the editor’s weekly Friday commentary
  • 
 Be the first to hear about our events and awards programmes.

Join

 

Already a Professional Adviser member?

Login

More on Regulation

Firms urged to engage with 'huge opportunity' PRIIPs consultation

Firms urged to engage with 'huge opportunity' PRIIPs consultation

A closer look at industry views on the FCA and Treasury papers

Kathleen Gallagher
clock 16 December 2022 • 4 min read
HM Treasury, Westminster

FCA launches discussion paper around PRIIPs replacement ideas

Comes after the Treasury removed the regulation last week

Kathleen Gallagher
clock 13 December 2022 • 2 min read
Port Talbot, Wales

FCA slaps £2.4m fine on liquidated firm over British Steel failings

Pembrokeshire Mortgage Centre traded as County Financial Consultants

Hope William-Smith
clock 02 December 2022 • 2 min read