A brief overview of EAM and IAM services



 External asset management


External asset managers (EAMs), also known as independent asset managers, administer financial assets and investments for others without taking custody of them.


You'll still need a custodian, usually a regulated bank, and a power of attorney to permit portfolio management if you deal with an EAM. The EAM's power of attorney is generally limited, and they are not allowed to remove funds.


Independent asset management


EAMs are financial service providers who aren't licensed as bank or securities dealers in most situations. They are independent of the custodian and hence free to offer any product or solution to their clientele. They don't hold their clients' assets because custody remains in their clients' names, as previously stated. EAMs offer financial advice in addition to discretionary asset management.


The external asset management business model


You need to consider three contractual relationships when working with an external asset manager:

 

  • The asset management agreement

  • The custody agreement with your bank

  • The partnership between EAM and custodian

 


To know all details about external asset management, capabilities, business model, pricing, regulation, and how to select your external asset manager, read the blog via the below link.


Read the blog:- https://www.centrolaw.ch/en/insights/detail/the-comprehensive-case-for-external-asset-management

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