Profiles and Analysis
Fewer IFAs likely to head for the exit
One of the initial reactions to RDR was concern about the
high number of IFAs who were going to leave the industry.
As we get closer to its introduction, there are still more
than a few things to be resolved, but one issue that is
looking clearer is the number of intermediaries leaving
the industry is likely to be less than originally feared.
The original estimates from some of the bigger fund
houses were that the number would shrink from a rough
estimate of 30,000 by a third, with as many as 10,000
individuals leaving the industry.
In February 2009, Ernst & Young suggested that the
number of IFA firms would be reduced post-RDR by
as much as 40%, from 16,000 to 10,000. More recent
research from Aviva Investors suggests 89% of IFAs are
expecting to be in business on 1 Jan, 2013, although 40%
cite remaining profitable as being their greatest concern.
� 58% of adviser firms are close to being RDR-ready.
� However, almost 40% still have to determine their
business model.
� More than half (56%) believe regulatory changes
are likely to increase the outsourcing of investment
decisions.
Source: Fidelity Worldwide Investment poll
In this section…
Investment strategies
UK DOMESTIC 16-17
“UK investors have always
maintained a strong local bias
and recent sales data shows a
rush to what they see as safer
assets amid ongoing eurozone
turmoil” Managers have shifted
their funds towards overseas
earners but, as James Smith finds,
the tide may be turning with many
domestically-focused stocks
looking attractively valued
Viewpoint
RETAIL DISTRIBUTION
REVIEW 20-21
“The reality is that we are in the
final stretch in terms of RDR,
with less than 12 months to go
until the FSA’s final rules are
adopted” Gary Shepherd talks to
fund groups to find out what they are
doing in preparation for RDR, and
finds there are still many loose ends
Wealth manager profile
SIMON JAMES 18-19
“Every single private client is
different from the next. We do
not hold with the economies of
scale kind of private banking”
Less than a decade old, Gore
Browne’s investment team takes
a very modern hands-on approach,
says one of its founding partners
Fund manager profile
JAMES INGLIS-JONES
22-23
“We take the view that people
really do not know what is
going to happen in the future,
so we do not bother trying to
predict it” Liontrust duo Inglis-
Jones and Gary West are not prone
to macro predictions nor do they
make a habit of stepping out of
their office too regularly
JANUARY 2012 [www.portfolio-adviser.com] PORTFOLIO ADVISER
15
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