In the ever changing world of retail investment advice, the standard business models across our industry – and an ever growing number of jurisdictions around the world – continue to evolve, with many financial service providers forming partnerships that offer a better service overall. This is due, to the oft-referenced Retail Distribution Review (RDR) – an ongoing improvement process that is already in force in the UK and Australia. As organisations have had an opportunity to get a better idea of how this would impact their business, many are seeing this as a positive opportunity for independent financial advisers (IFAs) and trustees to join forces with discretionary investment managers in a real partnership, offering an even better service that ultimately benefits the end-client.
Whether it is as a result of changes or anticipated changes in regulation, or simply because IFAs and their clients see the benefits of adopting an outsourced business model as best practice, it is a trend that continues to gain momentum. It is important to appreciate that this kind of partnership is not a threat to either independent business, as it creates a much stronger and more robust business model. MitonOptimal has already formed a number of strategic partnerships with IFAs and trustees across our global network. In the UK, now considered a reasonably mature RDR market, a large and growing number of IFAs are opting to outsource their investment propositions to a discretionary investment manager, allowing the IFA to focus on financial planning, tax and estate planning and retirement calculations, as well as that all-important client relationship. This outsourcing is not, however, an abdication of their responsibility… READ ENTIRE ARTICLE >>