Post by rgs2001uk on Oct 31, 2019 22:03:45 GMT 7
Is this what awaits us?
Years ago was with an old established stockbrokers firm, taken over by Barclays wealth, nothing but vultures.
I ditched them and went to another independant stockbrokers, since taken over by rathbones.
This was sent to me today,
"Dear xxxxx
You may be aware that, as a firm, we have mentioned discretionary management on a number of occasions over the last few years. We have seen a gradual transition in the UK wealth management industry towards discretionary management but the pace has really accelerated over the last two years in particular, following the introduction of MiFID II.
As things stand, the investments are managed on an advisory basis. This means that we will contact you periodically with recommendations but the final investment decisions remain yours. We believe that you should consider an adjustment to discretionary management for a number of reasons.
The primary rationale is the important requirement to maintain appropriate portfolio structure and balance. Equity and bond markets are increasingly global and complex. Documentation and news-flow from companies, governments and research houses is ever more technical and fast-paced. Keeping on top of volatile markets requires constant care, attention and vigilance. We have found that discretionary management offers us the ability to be more proactive with changes, as it removes the link in the chain of writing to clients and seeking permission first.
As mentioned above, MiFID II and ongoing regulatory changes have also impacted advisory management. These have a laudable objective of improving investor protection, which we fully support. However, this has been expressed as a requirement for a significant additional volume of documentation and paperwork for advisory clients. For example, we now need to send out key investor information documents for any proposed investment or unit trust purchase. In addition, we are also required to provide separate reports outlining the detailed investment rationale and the potential costs and benefits of every transaction.
The technical content of future recommendations will continue to increase as the level of required information/documentation for advisory portfolios rises. These requirements mean an inevitable delay in making any appropriate changes, which is not ideal given the speed at which markets are constantly reacting to new information. In times of stress, the ability to react immediately for discretionary portfolios is invaluable.
The majority of our client portfolios are managed on a discretionary basis and this has increased steadily over the last three years, particularly as we ceased accepting new advisory portfolios a few years ago. At present, our discretionary service has exactly the same fee basis as the advisory service. However, given the increased time associated with advisory portfolios, the cost of advisory management is likely to rise in due course and may become significantly more expensive than our discretionary service.
An adjustment to discretionary management does not necessarily mean a reduction in communication. It does not mean that you cannot phone me up, write to me or come back to me on any issue – I certainly enjoy the regular and ongoing contact with all of my clients.
I very much believe that this is now our strongest service. Rather than the portfolio reflecting a hybrid of my advice and your responses, discretionary management firmly places the burden of responsibility for the investments on me, as one may expect when paying for a professional service. If this is something which you would like to embrace then please do not hesitate to get in touch. I would be happy to discuss this in more detail, if this would be helpful?
Kind regards."
NO EFFIN CHANCE, i will keep my powder dry and my lamp turned down low until i get to the uk next year.
What the eff do they want, sheep rather than thinking men, do they really think we are that dumb?
Signed, disgutsed from bkk.
Years ago was with an old established stockbrokers firm, taken over by Barclays wealth, nothing but vultures.
I ditched them and went to another independant stockbrokers, since taken over by rathbones.
This was sent to me today,
"Dear xxxxx
You may be aware that, as a firm, we have mentioned discretionary management on a number of occasions over the last few years. We have seen a gradual transition in the UK wealth management industry towards discretionary management but the pace has really accelerated over the last two years in particular, following the introduction of MiFID II.
As things stand, the investments are managed on an advisory basis. This means that we will contact you periodically with recommendations but the final investment decisions remain yours. We believe that you should consider an adjustment to discretionary management for a number of reasons.
The primary rationale is the important requirement to maintain appropriate portfolio structure and balance. Equity and bond markets are increasingly global and complex. Documentation and news-flow from companies, governments and research houses is ever more technical and fast-paced. Keeping on top of volatile markets requires constant care, attention and vigilance. We have found that discretionary management offers us the ability to be more proactive with changes, as it removes the link in the chain of writing to clients and seeking permission first.
As mentioned above, MiFID II and ongoing regulatory changes have also impacted advisory management. These have a laudable objective of improving investor protection, which we fully support. However, this has been expressed as a requirement for a significant additional volume of documentation and paperwork for advisory clients. For example, we now need to send out key investor information documents for any proposed investment or unit trust purchase. In addition, we are also required to provide separate reports outlining the detailed investment rationale and the potential costs and benefits of every transaction.
The technical content of future recommendations will continue to increase as the level of required information/documentation for advisory portfolios rises. These requirements mean an inevitable delay in making any appropriate changes, which is not ideal given the speed at which markets are constantly reacting to new information. In times of stress, the ability to react immediately for discretionary portfolios is invaluable.
The majority of our client portfolios are managed on a discretionary basis and this has increased steadily over the last three years, particularly as we ceased accepting new advisory portfolios a few years ago. At present, our discretionary service has exactly the same fee basis as the advisory service. However, given the increased time associated with advisory portfolios, the cost of advisory management is likely to rise in due course and may become significantly more expensive than our discretionary service.
An adjustment to discretionary management does not necessarily mean a reduction in communication. It does not mean that you cannot phone me up, write to me or come back to me on any issue – I certainly enjoy the regular and ongoing contact with all of my clients.
I very much believe that this is now our strongest service. Rather than the portfolio reflecting a hybrid of my advice and your responses, discretionary management firmly places the burden of responsibility for the investments on me, as one may expect when paying for a professional service. If this is something which you would like to embrace then please do not hesitate to get in touch. I would be happy to discuss this in more detail, if this would be helpful?
Kind regards."
NO EFFIN CHANCE, i will keep my powder dry and my lamp turned down low until i get to the uk next year.
What the eff do they want, sheep rather than thinking men, do they really think we are that dumb?
Signed, disgutsed from bkk.
