The benefits of
Reliance on Others
Key features of Reliance on Others
With 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.
This means the adviser is only responsible for assessing the initial suitability of ebi’s investment solution. The responsibility for investment decisions made within the portfolio, are with ebi.
This offers the following benefits to the adviser, when compared to Agent as Client
May reduce Professional
Indemnity cover costs
As regulatory risk is reduced
Both in ensuring compliance is followed,
and if a complaint is raised
The investor has access to FOS with complaints
Much clearer for all parties where their
Setting up Reliance on Others contracts does require an initial investment in time, for both the adviser and investor,
but may offer long term benefits.
Find out more about Reliance on Others and how it differs from Agent as Client with our Infographic.