Can wealth managers escape the post-RDR margin squeeze?

While asset managers have enjoyed 12 months of healthy bottom line growth, some of the UK's highest profile wealth managers appear to be at a different stage of the cycle.

The likes of Brewin Dolphin, for example, have endured a tough time in recent months: restructuring costs and the Financial Services Compensation Scheme levy drove profits down 44% for the six months to 31 March. Brooks Macdonald's latest quarterly results were also met with limited optimism from the analyst community, while others such as Ashcourt Rowan are in the middle of a comprehensive turnaround plan. With RDR putting further pressure on margins as the industry adapts to the end of trail commission, and regulatory costs only moving in one direction, prospects for the sector as a...