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Brooks Macdonald Client Agreement

In this update, we focus on the intricacies of client and agent agreements as clients involving investors, discrete fund management companies (DFMs) and financial advisors. We discuss the impact of their wording on Brooks Macdonald`s service and the impact MiFID II will have on what they contain. Connellan said, “We strive to provide a first-class consulting experience and excellent customer service, and this exciting partnership with SS-C will further enhance the strong relationships we have today. This step marks the company`s next step in transforming its technology offering, both for intermediaries and customers, as it focuses on improving the consulting and service experience through innovation. In any client contract that consultants enter into with an underlying client, these agreements should include the role of the aptitude advisor. As noted above, we expect our customer agreements to be reviewed and amended with respect to depreciation reports, and we will discuss this issue in more detail in a separate article. The regulatory definition of “agent-as-client” is derived from the conduct of Business Sourcebook COBS 2.4.3. On July 17, Portfolio Adviser published an article entitled Thousands of IFAs threatened by the inadequacy of the DFM agreements, based on a good practice guide from the Personal Finance Society (in collaboration with Diminimis). This means that many “agent-as-client” agreements between financial advisors and DFM companies need to be amended before MiFID II is even implemented. Such agreements should ensure that appropriate authority is granted to enable each party to exercise its specified responsibilities, but Portfolio Berater has proposed that a number of cases have been created in which consultants have signed agent contracts as clients without first obtaining the appropriate authority of the underlying client. Under Agent-as-Client agreements, DFM`s financial advisors treat their clients as clients opposed to the real investor (hereafter referred to as the “underlying client”). MFDs and financial advisors should ensure that all agreements they have reached clearly show who is responsible for every aspect of the relationship with the underlying client, including reporting. According to MiFID II, there is a new notification requirement if a client`s portfolio depreciates by 10% (and several times) over a reference period.

This means that all existing customer agreements need to be changed. We will discuss the depreciation report in more detail in a separate article. We do not believe that MiFID II will change the broader concepts contained in agent-to-client agreements, although it will require some modifications and therefore provides consultants with a natural opportunity to review their existing agreements. We suggest that consultants consider the following when reviewing their agreements: At Brooks Macdonald, our general client agreements indicate our direct relationship with the underlying client and define how they use our discretionary investment services on the recommendation of their advisor. These agreements define the responsibilities of Brooks Macdonald and the advisor with respect to the underlying client, with a particular focus on delineating the roles of aptitude assessments. In our agreements, we will clearly state the consultant`s responsibility: the collaboration will provide additional tools for intermediaries, such as automated client onboarding, comprehensive consulting and customer portal functionality, tailored reporting and improved processing of requests and requests, according to the company. At Brooks Macdonald, we only have agent-as-client agreements with consultants who access our services through investment platforms; However, we will update them before the MiFID II implementation deadline of January 3, 2018.