Evidence based investing specialist, ebi, has announced today that it now offers ‘Reliance on Others’ contracts to its members.
This sits alongside its existing ‘Agent as Client’ option, providing advisers with a choice depending on their business requirements.
The key difference between the two contractual relationships is who ebi treats as their client.
With ‘Reliance on Others’, the adviser and investor become a client of ebi, each having their own responsibilities and obligations to the investor.
This is in contrast to ‘Agent as Client’, where the adviser is treated as ebi’s client, and will act as agent for the investor. ebi will have no contractual relationship with the underlying investor.
ebi have produced a useful infographic explaining the differences between each approach, which can be downloaded here.