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.”