While investment administration is important and time-consuming, it is not something that the client is likely to appreciate. The adviser again is the one who adds value at the annual review stage, where they once again check the client’s tolerance and capacity for risk, and reconfirms the requirements for the following year.
The regulator recently highlighted the different ways in which advisers can work together, such as tripartite agreements, outsourcing agreements and the adviser as agent.
Of these the adviser as agent agreements allow advisers to own the value chain and are likely to grow in popularity. Client loyalty is preserved within the adviser firm, so crucially, this structure enables proper ownership of the advisers’ business value and advisers can build value into their own brand rather than simply making client introductions to DFMs.
Nicola Robinson is manager, corporate department, at Parmenion
