Discretionary fund manager Tatton Asset Management has said that new rules over charges disclosure could open up new doors to advisers rather than pose a threat to their businesses.
In its annual results released this morning, Tatton has reported a 25 per cent increase in discretionary assets under management to £6.1bn, and a 12 per cent increase in operating profit to £7.3m.
Tatton Asset Management is the parent company of DFM Tatton Investment Management, mortgage and protection distributor Paradigm Mortgages, and adviser support services business Paradigm Consulting.
While the mortgage business also saw a significant increase in revenues, Paradigm Consulting saw a dip in revenues due to “lower levels of additional consultancy and reduced flows on the Paradigm wrap platform”.
Tatton says that it will continue to focus on offering core regulatory support through Paradigm, branding Mifid II charges disclosure “the most significant change to the financial advice sector”.
Tatton writes: “Our research has revealed that for investors and advisers using traditional off-platform discretionary asset management firms, this level of disclosure will be enlightening, and unfortunately place pressure on the fees they charge for the stewardship of their clients’ finances.
“Rather than an obstacle to IFAs’ businesses we see increased fee disclosure as an opportunity for the IFA to actively manage costs for their clients and demonstrate how they are adding value.”
The wage bill for Tatton Asset Management increased from £5.3m to £6m over the 12 months, with the firm hiring an extra two staff over the year.