Adviser Guides 1hr
Guide to outsourcing fund management – part 2
The nature of discretionary fund management means an adviser is authorising a third party to make decisions on behalf of the client.
It is vital to maker sure the terms of the discretionary fund management relationship are clearly set out and capable of satisfying both client and adviser.
The second of this two-part guide tackles what questions to ask a discretionary fund manager and how to make sure the outsourcing arrangement works today and for the long-term.
Answers supplied by David Lumley, director of Arena Wealth, Mark Soonaye, product director of Octopus Investments, and Carl Lamb, managing director of Almary Green.
IN THIS GUIDE
The steps you take to narrow down your search will need to be extended into the due diligence stage.
IFAs know the importance of written evidence.
The outsourcing agreement will be a tripartite agreement that clearly sets out each participant’s roles and responsibilities.
The terms of the agreement should define the involvement of each party, the remuneration involved and the service levels agreed.
Constant review and assessment is the only way to ensure the arrangement is delivering on its promises.
If things are not going to plan, then challenge your partners without delay.