Several organisations usually sit behind a single financial product, and only one of them is responsible for each part of it.
The advisor or representative provides the service under a licensed financial services provider, or FSP. A platform may administer an investment and produce statements. An asset manager runs underlying funds. A discretionary fund manager may alter a model portfolio under mandate. An insurer issues and stands behind an insurance contract. Regulators supervise parts of the system; ombud schemes handle qualifying disputes.
One group can own more than one role, but the responsibilities and fees should still be visible. When something goes wrong, start with the party responsible for that function rather than assuming any single organisation controls the whole chain.
Try this now
Draw the chain for one product. Under each organisation, write “advice”, “administration”, “investment management”, “insurance promise”, “regulation” or “complaint review”. Add the fee or contact where relevant.
Ask your advisor
- Which party makes each decision?
- Which party holds my money or contractual promise?
- Are any of the firms related by ownership or remuneration?
- Who should I contact for an error, claim or complaint?
Understanding the chain makes both cost and accountability easier to follow.