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Rathbone Investment Management to be 'restricted' post RDR
by Sarah Miloudi on Jul 26, 2012 at 10:28
Rathbone Investment Management will be restricted after the retail distribution review (RDR).
Rathbone Investment Management has said its advice will take on a 'restricted' badge when the new regulatory framework comes into force next year, while its pension and advisory services arm would be classed as 'independent'.
The firm announced its post-RDR labelling as it updated shareholders on its performance over the half-year ended 30 June. Over the stretch, funds under management rose to £16.6 billion, up 5% from £15.85 billion, while profit before tax was £19.9 million, down 3.4% compared to £20.6 million in 2011.
Rathbines said that its preparations ahead of the RDR compliance deadline on 31 December were 'well advanced' and outlined how the status of its advice would be described once the rules are enforced.
'Rathbone Investment Management is an independent discretionary investment manager (as we invest client portfolios across the whole of the market), our advice will be "restricted" in RDR terms as it does not cover pensions and life assurance. In contrast, Rathbones Pension and Advisory Services is a general financial adviser and as it provides advice across the whole of the RDR range of assets, it is classified as '"ndependent" for RDR,' the firm explained, highlighting a post-RDR classification similar to rivals Brewin Dolphin and Quilter, which will also be restricted.
'Our fee scales are RDR ready and we have operated to RDR disclosure levels for many years. System changes have also now been completed to comply with adviser charging requirements.'
Andy Pomfret (pictured), chief executive of Rathbone Brothers Plc, added that the firm is well positioned to grow in the future despite the choppy environment faced by both private and professional investors.
He said: 'Our first half performance has been resilient despite volatile investment markets as we have seen the full benefit of recent acquisitions and continuing net organic growth. Organic and acquired growth in our investment management business was an annualised 6.7% in the six months to 30 June 2012 (2011: 8.4%).
'In spite of challenging investment conditions, we are continuing to invest in people and systems to improve both our efficiency and respond to regulatory change. Whilst investment markets are expected to remain uncertain, Rathbones is as well placed as ever to develop future growth.'
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