City Asset Management is set to move to a restricted model post-RDR but may become independent in the future.
Chief executive Nicholas Coghill says the firm is likely to follow the majority of the discretionary market and become restricted from next January.
He says: “What we are leaning towards at the moment is becoming restricted, with the aspiration to be whole of market down the line.
“It is very difficult to sit here and say we can do absolutely everything for everybody. The majority of the market is coming out and saying they will adopt a restricted model.”
Bestinvest managing director of business development and communications Jason Hollands says: “It does not surprise that a number of discretionaries are going for restricted status. That does not mean they are going to put clients into a very tight list of investments. Discretionaries are erring on the side of caution in terms of the status they adopt to post-RDR.”