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Bestinvest targets RDR 'orphans' as profits dip to £5.9m

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Bestinvest targets RDR 'orphans' as profits dip to £5.9m

Bestinvest has argued it is poised to benefit from the retail distribution review (RDR) advice gap, as it announced a 10% drop in pre-tax profits to £6 million for the 12 months to the end of May 2012.

Echoing the sentiments of execution-only behemoth Hargreaves Lansdown, Bestinvest said that it saw significant opportunities in the RDR.

'It is widely expected that as a result of the RDR some investors will be "orphaned" from the financial advice market, as they will not be prepared to pay for the level of fees expected to be levied for financial advice,' it said.

'However, given Bestinvest's range of services and expertise in providing guidance for self-directed investors, the group expects to be a beneficiary from this development and is working on a number of initiatives to ensure it is well positioned.'

Assets under management stayed flat at £4 billion, while Bestinvest said revenues were boosted by clients' move from its execution-only offering to discretionary and advised services.

It added that it expected to see growth from its Sipp offering. 'The Best Sipp, available through [platform] Select, is very competitively priced compared to other low-cost Sipps and the business has increased its marketing focus on pensions,' it said.

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