McBreen says advisers need to be able to react quickly when managing client portfolios and sophisticated investment vehicles are making it more important to offer discretionary management or have a good relationship with an outsourced discretionary manager.
He says: “As firms start to shift away from sales to advice, they need to be able to advise clients across a range of assets. More and more clients are taking on new investment instruments and will want regular reviews and tactical action. As investment vehicles get more sophisticated, the need for a discretionary mandate will become more important in relationships with clients who need to get in and out of investments quickly.”
Heron House Financial Management managing director Saran Allott-Davey says: “We have opted not to take the discretionary management route but even if you are choosing funds on an advisory basis, we feel it is important to be as well qualified as possible. Advisory firms are not required to have specialist investment qualifications but I am working towards the Investment Management Certificate.”