How can fund groups cope with detachment from end clients?

LEADER

John Ions, chief executive of Liontrust, last week issued a warning to asset managers that they face a serious threat from the growing dominance of distributors as the RDR approaches.

He said distribution networks were once again becoming powerful as their control over fund flows increases. “The changes brought on by RDR should not be underestimated. There may be much focus on price and consumer outcomes but it has also clearly identified that distribution power is now vital,” he said. “An even greater amount of fund flows will be controlled by fewer more powerful distributors.” His warning comes after Investment Week reported that Old Mutual Wealth, which includes the rebranded Skandia business, is looking at taking stakes in restricted firms and doing deals with ...