Discretionary fund manager (DFM) and technology partner Parmenion has introduced a new option to advisers using its in-house DFM.

Following demand from advisers, Parmenion now offers the option of Reliance on Others (ROO) agreements, as well as Agent as Client (AAC) agreements.

These agreements determine the regulatory and legal basis on which advice firms partner with DFMs.

Parmenion outlined the differences between the two agreements as, on an AAC basis, the adviser is the client of the DFM provider and the DFM will have no contractual relationship with the end client.

Meanwhile, on a ROO basis, the underlying client will have a contractual relationship with both the adviser and the DFM provider, with the DFM using the suitability recommendation made by the adviser, and the DFM being responsible for delivering the investment mandate and investment management.

Parmenion said that it consulted with advisers while building its new ROO option, which aims to provide efficiencies for advisers and clients.

It added that because Parmenion is both platform and DFM, the client DFM agreement can be “quickly and simply integrated” into the appropriate processes and systems.

The firm will continue to develop how the ROO model works as it seeks to provide the best experience for all parties.

Earlier this year, Parmenion brought in tiered adviser charging as it sought to make it easier for advisers to charge flexibly.

Commenting on the announcement, Parmenion chief commercial officer, Mike Morrow, said: “We are continuing to listen to advisers and give them more options to work with a DFM and platform that strives to give them fantastic service, with ever-improving technology and user experience.

“Rather than forcing advisers to adapt their business to the way we work, we want to wrap around their business, giving them choices which help them to serve their clients in the most efficient way.”

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