Discretionary investment managers (DIMs) provide a critical role on the buy side and play an invaluable role in managing their clients assets. Most small and medium sized DIMs are authorised for both advisory and investment management permissions with a combination of agency dealing and custody or arranging custody permissions. 

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On top of having to meet several requirements stemming from regulations such as MiFIDII, GDPR, and MAR, DIMs have increasingly faced the challenges of passporting post-Brexit.  Some DIMs also operate and manage AIFs (alternative investment funds) or UCITs funds (undertakings for collective investment in transferable securities) and come within the respective AIFM and UCITS regulations on top of MiFID.

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For regulatory purposes such firms are known as collective portfolio management investment firms (CPMIs).  Some DIMs choose to make use of a regulatory hosting platform to avoid being directly authorised by the FCA and operate as an appointed representative of a principal firm instead. However, others decide to be authorised and regulated directly providing flexibility. Our Consultants have tremendous experience working with DIMs and supporting all regulatory, compliance, and risk functions.