PFS warns of 'haunting' risk of discretionary agreements claims

Offering guidance

Sophie King
clock • 2 min read

The Personal Finance Society (PFS) has published a guide warning advisers what to do to ensure any work they do with discretionary investment services does not come back to haunt them.

The guide, produced for the society by qualitative research firm Diminimis, has set out to clarify the legal and regulatory requirements that need to be met by advisers and any discretionary investment service they work with. If an adviser were to act outside the authority given to them by the advisory agreement they have in place, it warned, then both the client and the discretionary investment manager could make a compensation claim. Advisers must check agreement terms with DIMs, warns consultant Furthermore, the guide suggested producing an agreement that does not leave advisers...

To continue reading this article...

Join Professional Adviser for free

  • 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 DFM & Model Portfolios

'MPS is a service not a product'

'MPS is a service not a product'

PA360 panellists on value and compliance

Sophia Panayi
clock 30 April 2026 • 3 min read
Why MPS providers must embrace automation before the FCA's Multi-Firm Review demands it

Why MPS providers must embrace automation before the FCA's Multi-Firm Review demands it

'Technology is the only scalable answeTechnology is the only scalable answer'

Professional Adviser
clock 28 April 2026 • 3 min read
7IM broadens income‑focused model portfolios

7IM broadens income‑focused model portfolios

As advisers ‘rethink income, tax and retirement needs’

Jenna Brown
clock 21 April 2026 • 2 min read