"It means advisers will likely find themselves caught between a DIM and client and in a vulnerable position."
Mr Gurr added: "Our work with adviser firms suggests there is often a mismatch between what the adviser understands they are responsible for when using the services of a discretionary investment manager and what the actual situation is, often leaving the adviser in an untenable situation."
The PFS is also offering a limited number of telephone consultations with Mr Gurr, funded by the professional body, if advisers remain unsure whether their existing agreements are suitable.
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