DIMS questions remain for advisers
That’s despite a guidance note on DIMS issued by the FMA last week.
The FMC requires that an independent custodian hold client money and property when an adviser is providing DIMS.
The FMA released a guidance note last week that said independent custodians would be required unless otherwise permitted by the terms of an AFA’s authorisation. What those exemptions will be and who they will apply to when the new rules kick in next year is unclear.
It has recommended that AFAs who are not currently using independent custodians to hold client property in an investment portfolio to review their options and make changes accordingly. “Although the requirement is not yet in force we encourage AFAs to appoint an independent custodian to hold client property and money.”
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