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Reaching an agreement and avoiding poaching

This article is part of
Guide to Discretionary Fund Management

She says: “If you use a bespoke service provided by a DFM that also employs financial planners then there is some risk as the client will have a direct relationship with an investment manager at the DFM firm.

“However, the probability of this happening in practice is somewhat reduced by the fact that the DFM is likely to have a relationship with the adviser across many of their clients. The DFM would not want to ruin this relationship and damage their reputation in the adviser market.

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“Many DFMs are now making their managed portfolio service available on platforms and some DFMs are only offering their services exclusively via platforms. This means that the DFM has no relationship with the end client and only deals with the adviser.”