Reliance on Others or Agent as Client
As a Discretionary Investment Manager (DIM), ebi offers both Reliance on Others and Agent as Client contracts.
As a Discretionary Investment Manager (DIM), ebi offers both Reliance on Others and Agent as Client contracts. These are the two main ways advisers may wish to contract with a DIM, but what are the differences?
The key difference between the two is who the DIM treats as their client.
Infographic Download
‘Reliance on Others
or Agent as Client’
This infographic explains the pros, cons and differences between the two contracts.
Reliance on Others
Both the adviser and the investor will become a client of ebi. Both the adviser and ebi will have their own responsibilities and obligations to the investor, as set out in the Investment Management Agreement.
Learn more about the benefits of Reliance on Others.
Agent as Client
The adviser will be treated as ebi’s client and will act as agent for the investor. ebi will have no contractual relationship with the investor.
What are the differences between Reliance on Others and Agent As Client?
Reliance on Others
Investor becomes a client of
the DIM & adviser
Investor has access to FOS
(DIM Complaint)
Responsibilities are more
equally shared
PI insurance costs
may be lower
Increased paperwork for
adviser and investor
Agent as Client
Adviser controls the relationship
with the investor
Simpler setup.
No agreement between DIM and investor
Reduced
paperwork
No access to FOS
(DIM complaint)
PI insurance costs
may be higher
Infographic Download
‘Reliance on Others
or Agent as Client’
This infographic explains the pros, cons and differences between Reliance on Others and Agent as Client.
Which setup should I opt for?
It is important that the roles and responsibilities of the DIM and adviser are clearly defined, understood and are explained to each investor. ebi offer both Reliance on Others and Agent as Client contracts, and advisers should choose the contract that is the best fit for their business. There are pros and cons to each approach, and it is important all parties are aware of their roles and responsibilities.
Speak to a member of ebi’s team who will happily discuss the differences. Register your interest by clicking a button below.
