Citywire printed articles sponsored by:
View the article online at http://citywire.co.uk/new-model-adviser/article/a699981
UK Wealth Management posts £1.9m loss as RDR slows progress
by Alex Steger on Aug 30, 2013 at 11:05
UK Wealth Management posted a £1.9 million loss in the run-up to the retail distribution review (RDR) as the regulatory reform resulted in advisers leaving the firm and impacted its acquisition strategy.
The Yorkshire-based firm made a loss before tax of £1.9 million, compared with a loss of £144,730 the previous year.
In its financial statement for the year ended 31 December 2012 UK Wealth Management said the RDR had affected its revenues and acquisition strategy and led to adviser departures.
It said revenue had declined as it changed its charging structure and that its approach to the RDR had caused some advisers to leave.
‘As the business stared to move towards the new model in 2012, revenues and cash flows were reduced,’ it said.
UK Wealth Management, headed by chief executive Lynn Coleman (pictured), said that the impact in revenue was a one-off event and that while some advisers had left, the firm had since made some high calibre appointments.
‘This is a one-off charge and future periods should see revenues increase,’ it said.
The financial statements, filed with Companies House, said that the regulatory reforms had made it hard to value firms for acquisition, meaning that it had only completed one deal.
Revenues were down slightly by 4% from £8.6 million in 2011 to £8.2 million for 2012, with revenues per adviser dropping from £213,000 to £205,000.
News sponsored by:
Today's top headlines
Challenged by growing risk aversion?
Challenging financial markets over recent years have resulted in growing risk aversion among British savers and led many to seek safety in cash. Click here for more.
More about this article:
by Michelle Abrego on Dec 11, 2013 at 14:51