MiFID II could end 'risky' adviser/discretionary operating model

Advisers must push for change - PortfolioMetrix

MiFID II should improve the operating model between advisers and discretionary investment managers and spell out "who carries the can" should a client complain, according to PortfolioMetrix.

The firm said the second round of Markets in Financial Instruments Directive regulation (MiFID II), which is due to come into force on 3 January, would enhance the way advisers and investment managers work alongside each other but it was up to advisers to "lobby for change" as adopting a different operating model was not mandatory. The discretionary investment management business explained at present 90% of advisers using model portfolios on platforms supplied by discretionary investment firms are operating under an ‘agent as client' framework. It said this approach addressed the key ...