Investments  

Guide to Discretionary Fund Management

  • Describe the implications of DFM choice on your regulatory permissions
  • Identify the assets that typically do best in a recession
  • Explain the considerations when choosing an investment manager
CPD
Approx.60min
Guide to Discretionary Fund Management

Introduction

Centralised investment propositions are a way for advisers to outsource the investment management function of their business, and discretionary fund management is an option increasingly favoured by advisers. 

But what are the regulatory implications for an adviser choosing to outsource, and this guide will, in particular, examine the implications for advisers regulatory permissions of choosing to outsource on the basis of being an ‘agent as client”, as compared with an “agent of the client approach.”

Section one of the guide will examine the pros and cons of each of those options. 

Once the adviser has chosen which type of relationship they want with the investment manager, the next task is to choose a provider. Section 2 of the guide looks at the considerations for advisers to consider when choosing an investment manager with whom to partner.

The premise of most outsourced investment propositions is that clients can be grouped together by risk, and that the risks associated with each asset class are clear and historic, despite the sharp changes in the wider world. 

This guide offers 60 minutes of CPD. 

In this guide

CPD
Approx.60min

Please answer the six multiple choice questions below in order to bank your CPD. Multiple attempts are available until all questions are correctly answered.

  1. What is the risk to the adviser of having an "agent as client" relationship with an investment manager?

  2. Why do government bonds perform well in times of market turmoil?

  3. Why does the personal relationship matter when choosing a DFM?

  4. Why have equities performed well since March?

  5. Why are some DFMs turning to gold in the current climate?

  6. What is one of the main advantage of using a DFM?

Nearly There…

You have successfully answered all the questions correctly, well done!

You should now know…

  • Describe the implications of DFM choice on your regulatory permissions
  • Identify the assets that typically do best in a recession
  • Explain the considerations when choosing an investment manager

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