The fragmented UK wealth management sector is shrinking as firms quit, bulk up or look to service a more profitable slice of the country's growing number of rich clients, to cope with costly new regulations.
Reuters reports that there were 147 firms managing £554bn ($918bn) of business in the sector, including private banks, private client investment managers, full service wealth managers and execution only brokers, at end-2012 according to industry data provider ComPeer.
This week saw Rathbones Brothers, Jupiter Fund Management, Pictet & Cie, Berenberg Bank and Deutsche Bank's fund arm all shaking up their operations.
New rules brought in last year, as part of global efforts to make markets safer, are squeezing the profits of the smaller players in particular. Wealth advisors have to take more exams and systems must be in place to monitor client accounts. Commission based selling was also banned.
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