Technology and investment solution provider Parmenion has rolled out a partnership programme to give advisers access to its discretionary fund management (DFM) services.
This is several months after Parmenion’s chief executive, Martin Jennings, pledged to focus on developing and delivering greater investment choice for advice firms.
The Affinity programme allows selected advice firms to work with Parmenion as an appointed investment adviser.
Advice businesses will use Parmenion’s authorised DFM expertise to manage one or more investment solutions, based on the firm’s existing model portfolios and investment philosophy.
The programme will help remove the administration burden of running advisory models and gives the advice firm direct influence over investment decisions.
Parmenion expects it will add up to six advice companies to the Affinity partnership each year over the next three years.
More to come
Jennings said: “We know that many firms are wary of the additional costs and risks that gaining their own discretionary permissions brings.
“With Affinity, Parmenion is delivering greater investment control and choice for advisers. We’ll announce other initiatives to improve our investment proposition in due course.”
Mike Barrett, consulting director of the Lang Cat, added: “Partnerships like this are an increasingly attractive option for many firms. They need to ensure the agreements between advice firm, discretionary partner, and client are robust, and responsibilities as to who does what are clearly set out.
“But once this is achieved these arrangements can deliver good outcomes for the advice firm and more importantly, the client.”
This latest move comes after AssetCo bought a 30% stake in Parmenion from European private equity firm Preservation Capital Partners for up to £27.8m ($38.3m, €32.3m).