Cue the James Bond theme music….
The Secret Agent, sent to do the bidding of His Majesty’s Secret Service, with all the training and experience gained over several years.
The crucial term is “Agent’. Even James Bond cannot simply do what he wants. He needs to be sent on a mission to perform certain functions or tasks.
Now as Managing Agents, we perform certain functions or tasks but we simply cannot perform these functions without a mandate or a “mission” to do so.
Managing Agents are (very) often mistaken as the decision makers, who perform functions or tasks on our own and actually carry out these tasks unilaterally.
This obviously is a fallacy as Managing Agents must only perform their duties on instruction from their clients.
Would or could an Estate Agent for example, simply sell a house without a mandate? No!
Could a Stockbroker (an Agent) sell or buy shares without the approval of his/her client? No!
Managing Agents cannot simply increase levies for instance, without the authority to do so.
Managing Agents cannot send contractors to repair a wall without the approval to do so.
(There is an exception to this of course, being an Executive Managing Agent, but that is an article for another time.)
The decision makers are the scheme members and then their elected representatives who send their agents on a mission to perform tasks on their behalf…neither shaken nor stirred.
Arthur Botha
CEO