Asking whether IFAs should obtain discretionary powers could not come at a more topical time, as Mifid II is set to make working on an advisory basis into 'a nightmare' according to some advisers.
But there is more to the question than regulation. Getting discretionary powers is helping some IFAs fend off competition form wealth managers, for example, or ensure that DFMs used for outsourcing do not damage client relationships.
In a detailed conversation advisers with discretionary permissions also discussed:
- shortcuts when applying to the FCA for discretionary powers;
- the impact on professional indemnity insurance costs;
- whether or not to hold client money;
- the impact on client communications and the advice process.
We invited Lee Robertson, chief executive of Investment Quorum, Isabel Sinclair, director of PFM Associates, Kevin Forbes, principal of Strategic Solutions Financial Services, and Paul White, group compliance director at Prydis.
You can check out the highlights of the session in the short video above.
If you want to see the whole round table from start to finish, simply click here.