Advice market will grow: Foster Denovo

Advice market will grow: Foster Denovo

There will be greater consolidation in the advisory market, despite legislative changes causing an increase in demand for advice, the chief executive of Foster Denovo has said.

Roger Brosch said: “These are exciting times for the sector, and we have committed to invest heavily in a number of innovative initiatives this year that will enable further organic and acquisitive growth in 2016 and beyond.”

He said the national advisory firm had already made a successful transition into the post-RDR, post-pension freedoms world, and was committed to invest in ways to help it grow, both organically and through acquisition.

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Speaking as the firm unveiled its 2014 results, Mr Brosch said the directors continued to expect that the future financial advice market would move towards increased consolidation, driven by the effect of regulatory changes such as RDR and the department for work and pensions’ changes in the employee benefits market.

The directors’ statement read: “The group sees the demand for financial advice increasing, whether through legislative change, such as that leading to pensions freedom and choice, or through employers seeking to provide financial education and access to advice in the workplace.”

Key figures

Total group cash resources as at 31 December 2014 increased to £7.39m from £6.33m year-on-year.

Turnover was up slightly up on 2013, from £24.9m to 26.39m.

Profit after tax was up at £1.2m, significantly higher than 2013’s post-tax profit of £137,000.

Source: Foster Denovo