PlatformsMay 9 2013

Skandia platform inflows drop 10% as RDR bites

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Old Mutual has warned of continuing difficulties brought on by the Retail Distribution Review as it revealed the Skandia platform has seen its net inflows fall by 10 per cent in the first quarter of 2013.

The asset manager attributed the dip in net inflows - which fell to £498m in the three months to March 31 2013, compared to £551m in the same period last year - to “continued uncertainty around new regulations”, which it said has “had an impact on distribution in the UK”.

The firm said: “In the UK, the savings market post the Retail Distribution Review has been disrupted with many independent financial advisers (IFAs) experiencing challenges in transitioning to the new regulatory framework.

“While these challenges are expected to remain in the short-term, we remain confident that we are well placed to be net beneficiaries of the RDR.”

Overall assets on the platform rose by 9 per cent to £24.7m, mainly due to positive market movement.

The overall Old Mutual Wealth division, which includes both Skandia and Old Mutual Global Investors, saw flat net inflows of £0.4bn in the past quarter to bring its total assets to £74.5bn, up 8 per cent since the start of the year.