Rathbone Brothers, the investment management firm, has said that it will be classified as 'restricted' under the Retail Distribution Review (RDR) when the new regulations come into play next year, although its pension and advisory services sector will be classed as 'independent'.
Its preparations for the RDR are "well advanced", saying "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".
The firm posted a "resilient" first-half performance, with total funds under management up 5.0% over the period, from £15.85bn to £16.65bn.
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Total net organic and acquired growth in the funds managed by Rathbone Investment Management was £497m in the first six months of 2012, representing a net annual growth rate of 6.7% (2011: 8.4%). Net organic growth of £270m for the first half represents an underlying annualised rate of net organic growth of 3.7% (2011: 6.9%).
Profit before tax was £19.9m, down 3.4% compared to £20.6m in 2011. Underlying profit before tax decreased 4.1% from £24.2m to £23.2m.
Underlying operating expenses of £54.5m were up 10.5% on £49.3m in the first half of 2011, largely as a result of higher client facing headcount and investment in marketing, research and compliance staff.
The share price dropped 2.14% to 1,283p by 13:41.
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