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Advisers divided on merits of discretionary permissions

Direction-Business-Strategy-Choice-Decision-Crossroad-700.jpgNearly half of Money Marketing readers think that advisers should have discretionary permissions, our latest poll shows.

In a survey of 120 readers on the Money Marketing website, 43 per cent said advisers should have discretionary permissions. 40 per cent said they should not, and 17 per cent remained undecided.

Many discretionary managers have reported increased inflows and portfolio sizes in recent years.

Platforum research last month showed that around 16 per cent of advice firms currently have discretionary permissions. These tend to be larger firms, with more than £250m in assets under advice or over 20 advisers.

David and Goliath: The investment advisers taking on the big players

However, the findings did not predict an immediate boom in the number of IFAs getting the permissions.

6 per cent said that planned to acquire discretionary status in the next two years, and 11 per cent said they planned to do so within five years.

Advisers reported that the administrative burden of communicating investment changes to clients was a driver behind holding discretionary permissions.

Money Marketing will be following up our and Platforum’s research with further analysis on trends in the discretionary market shortly.



What does ‘restricted’ advice really mean nowadays?

What does “restricted” advice really mean nowadays? Some see this as a question of semantics, others one of outcomes. Either way, the debate was reignited again a few weeks ago by consumer group Which? and its probe into St James’s Place. In a mystery shopping exercise, it found three of the 12 advisers visited did not […]


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There is one comment at the moment, we would love to hear your opinion too.

  1. Discretionary permissions means adding ‘managing investments’ and becoming a fully authorised MiFID firm with associated capital requirements. Minimum baseline capital of 50K Euros plus risk capital is not for the faint hearted or the small IFA practice.

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