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RDR spells end for 8% of advisers: Denovo

The London-based wealth management firm conducted a study of 100 advisers during August, and found that while 45 per cent think their business may contract or remain the same size for the foreseeable future, one-third have seen profit increases.

Some 47 per cent anticipate growth, while of these, 37 per cent said that the RDR has been profitable for their business. Of those seeing business growth, 36 per cent said they have already seen profits rise since the beginning of the year.

Roger Brosch, chief executive for the at Foster Denovo, said: “The sector has come a long way over the last eight months, but there is still some way to go.

“It is positive to see that more than a third of advisers have seen profit increases post-RDR, but it seems that it will be the most adaptable that survive and prosper in this new world.”

The poll came a month after the FCA announced that there were 32,690 retail investment advisers working in the UK as at July 2013 - a slight increase on December 2012, when there were 31,132 advisers counted by the then FSA.

Opportunities and challenges

39% Believe growth will come from working with affluent clients

32% Believe chartered status will help them win clients

51% Said compliance procedures were the biggest challenge

38% Cited time pressures as a frustration

Adviser View

David Crozier, co-owner of Navigator Financial Planning in Newry, said: “We are growing post RDR and expect to continue to do so. In any market it is the most adaptable firms who survive. This is not rocket science.

“I am surprised at the 8 per cent figure, however, which is on the low side. Some people are deluding themselves.”