Rathbones restricted post-RDR

Rathbone Investment Management has announced its advice will be classified as ‘restricted’ after the RDR comes into place.

According to the firm’s half-year report, Rathbone Investment management will fall into the restricted category as its advice does not cover pensions and life insurance.

The firm said its pension and advisory services arm would remain independent after regulatory rules come into place.

Elsewhere, the firm is set to lose 1,300 clients from its discretionary fund management (DFM) service in November this year, after Close Brothers Asset Management terminated a contract with the firm.

Rathbones said as of June 30 this year it managed £318m for Cavanagh Asset Management, which was acquired by Close Brothers Asset Management in April 2012.

Close has since given the firm notice of their intent to terminate the agreement to provide DFM service for Cavanagh.

Rathbones said: “We have had a productive and constructive relationship with Cavanagh over the last four years, and will work with Close financial advisers as they advise clients on suitable options.”

In the firm’s interim management statement, Rathbone Brothers reported a dip in pre-tax profit for the first half of the year, to £19.9m, compared with £20.6m for the same period last year.

Rathbones reports a 5 per cent increase in total assets under management in spite of the profit dip, bringing total funds under management at 30 June 2012 to £16.65bn, up from £15.85bn at 31 December 2011.