04-03-2021, 10:42 PM
Hi Corgitator,
In your ideal world, there would be a key man risk isn't it? You are just depending on one ID to make the recommendation to shareholders. And as we have seen here, it is quite subjective. Different people have different views.
In this current framework, the IDs are still responsible for making their recommendations. However, we have a professional financial outfit (aka IFA) to give advice to them. Then, the IDs will make their recommendation based on the IFA inputs plus other factors which they might wish to take into consideration. Since not all IDs are finance trained, I think IFA did provide some value here in giving their advice to them.
In your ideal world, there would be a key man risk isn't it? You are just depending on one ID to make the recommendation to shareholders. And as we have seen here, it is quite subjective. Different people have different views.
In this current framework, the IDs are still responsible for making their recommendations. However, we have a professional financial outfit (aka IFA) to give advice to them. Then, the IDs will make their recommendation based on the IFA inputs plus other factors which they might wish to take into consideration. Since not all IDs are finance trained, I think IFA did provide some value here in giving their advice to them.