View more on these topics

Advisers turning backs on big firms to go it alone

Kerr-Robert-Scottish Widows-2013 700 x 450.jpg
Scottish Widows head of distribution development Robert Kerr

Scottish Widows says it is seeing an increasing number of advisers leave bigger companies to start up their own business.

Speaking at a Perspective roundtable in London last week, head of distribution development Robert Kerr said the provider has noticed a shift away from the consolidation models established in the run-up to the RDR.

He said: “We are seeing advisory firms splitting up and downsizing at the moment. In the first five months of the RDR we are probably seeing more individuals coming out of larger firms and starting up on their own, that is where most of the activity is certainly in our agency department.”

Nucleus chief executive David Ferguson said: “Most quality advice firms are either small firms or conglomerations of small firms. That is the part of the market that is most comfortable with the RDR.

”As far as I can see most of the big advice models are bust because they were requiring funding from the providers, which does not exist anymore.”

But Tatton Investment Management chief investment officer Lothar Mentel said: “The RDR has created much higher barriers to entry for those wanting to set up their own practice because there is a massive cash flow problem. I foresee the mid-sized regional firm becoming much more the norm than it was in the past.”

Recommended

MM Leader: What will replace consultancy charging?

The mess that was consultancy charging was put out of its misery this week following the Department for Work and Pension’s decision to ban this form of payment to advisers. Last November, pensions minister Steve Webb announced an urgent review of consultancy charging and it had been expected that he would introduce a ban. Webb […]

Rathbone sees unit trust AUM rise 11%

Rathbone Unit Trust Management increased its assets under management by 11 per cent in the first three months of 2013. According to Rathbone Brothers’ latest interim management statement, published today, the group’s unit trust business saw assets under management grow 10.8 per cent from £1.3bn at 31 December to £1.4bn at 31 March. RUTM witnessed […]

First State to soft-close £4bn Global Emerging Markets Leaders fund

First State Investments plans to soft-close Jonathan Asante’s £4bn First State Global Emerging Markets Leaders fund owing to the size of the portfolio. A letter sent to investors explains the full 4 per cent initial charge will be applied to the fund from 7 September to “protect the interests of … existing investors” by discouraging […]

5

Steve Webb interview: Govt reviews pension rules in fight against liberation

Pensions minister Steve Webb says the Government is considering legislative changes to tackle pension liberation following a clamp-down by regulators and a series of arrests earlier this month. Earlier this year, a coalition of regulators launched a series of new documents designed to warn people of the dangers of attempting to access their pension early. […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment