Thinking on DIMS turned upside down
Under the new Financial Markets Conduct Act, which comes into force next year, advisers who offer class DIMS will need to be licensed.
Authorised financial advisers will be able to continue to offer personalised DIMS services under the Financial Advisers Act.
PAA board member and consultant Angus Dale-Jones said the fact that class advice was counted as higher risk than personalised under the FMC would require many advisers to up-end their thinking.
“In advice, the higher level, more complex advice is personalised. But with DIMS the reverse applies. There are higher licensing conditions applied when an adviser is managing a pool of clients. In my view, it’s a shame they’ve used the same terms because advisers are used to thinking that if they are only offering a class service, they can get away with less paperwork.”
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