Wealth Manager - the site for professional investment managers

Register to get unlimited access to Citywire’s fund manager database. Registration is free and only takes a minute.

RSM Tenon blames RDR for slump in advice business

RSM Tenon blames RDR for slump in advice business

National financial services group RSM Tenon has blamed the onset of the retail distribution review (RDR) for a slump in business within its financial advice division, in its interim management statement.

RSM Tenon, which houses accountancy and financial advice arms, said that the impact of the RDR on its advice offering was uncertain and that the division’s performance had fallen below expected levels.

‘Pending its introduction, there has been a slow-down in new business activity in the service line, which has traded below our expectations,’ it said. ‘We continue to take action to ensure that the cost base of Financial Management is appropriate for its levels of activity.’

But it added that the Financial Services Authority’s (FSA) heightened supervision of the business, following its £700,000 fine in 2010 for flaws in its sale of structured products, had now stopped.

‘Financial Management has made major progress over the last year following its period of heightened supervision with the FSA and has now moved to a business as usual monitoring relationship with the regulator, which will allow the service line greater time and focus to concentrate on its commercial trading,’ it said.

RSM Tenon’s reporting of its interim results for the period from 1 July to 19 November follows a disastrous set of results for the group for the year to the end of June, which saw it report a £101.8 million loss before tax.

RSM Tenon chief executive Chris Merry (pictured) said the group was making progress in returning to profitability. ‘I am grateful to our clients and staff for their continued support as we build on the changes we have made,’ he added.

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Citywire TV
Play Biotech Growth: we will ride out this storm

Biotech Growth: we will ride out this storm

Geoffrey Hsu of Biotech Growth Trust says the sell-off in biotechnology stocks represents a buying opportunity for long-term investors.

Play Picton: the UK property hotspots for rental income

Picton: the UK property hotspots for rental income

Picton Property Income CEO Michael Morris reveals how he is planning to ride the ‘ripple effect’ as UK economic growth spills out from the capital across the country.

Brewin's Foster talks financial crisis MkII with Allianz's Riddell

Brewin's Foster talks financial crisis MkII with Allianz's Riddell

This week Brewin Dolphin's head of research talks to Mike Riddell, fund manager at Allianz Global Investors, about the forces driving bonds markets in a tumultuous week for markets.

Your Business: Cover Star Club

Profile: 'what we are doing at Mosaic is Darwinian'

Profile: 'what we are doing at Mosaic is Darwinian'

The changes in financial services over the last few years may leave some destitute warns Marco Sambucci of Mosaic Money Management

Wealth Manager on Twitter