Select Page

Mandates, as well as investment funds, are an important part of the asset management industry. Institutional and retail investors have a wide range of individual management services. Unlike collective management, an individual (or discretionary) management mandate allows investors with sufficient resources to manage their assets to a position. As part of this agreement, the investor gives the manager a power of attorney to manage his investment portfolio. However, the services offered must remain consistent with the investor`s circumstances. A discretionary management mandate is a civil law contract between the director (representative) and the investor (the client) and signed during a personal interview with retail investors or following a request to submit proposals to institutional investors. In accordance with the terms of the mandate or discretionary management contract, the manager takes all initiatives he deems capable of managing the portfolio of the best results of the investor. Transactions are carried out without the investor`s prior consent and are reported to the investor after the fact. Individual asset management under a mandate differs from collective management in several respects: institutional investors are increasingly using proposals (RFPs) to select companies to manage their investments.

A PSR is a specification of the requirements that the investor (in some cases, with the help of a consultant) assigns to several management companies to delegate all or part of the investor`s financial management. Mandates may be offered by a portfolio management company as a primary transaction or by other investment service providers (ISPs), as in the case of private asset management services offered by banks. These providers must first submit their programme of activities to the Financial Markets Authority for approval. This process takes place in a formal and codified framework.