Wealth manager St James’s Place expects the RDR to diminish its adviser numbers and slow growth.

In its annual results released today, the firm reported a profit for its advisory arm of £6.1m for 2011, up from £5.8m in 2010.

Net inflows of funds totaled £3.3bn, bringing the total funds under management to £28.5bn, an increase of six per cent.

David Bellamy, chief executive of St James’s Place, said: “I am pleased to report another record year for St James’s Place in terms of new business, operating profits and funds under management.

“This performance, in market conditions that were far from helpful, is a testament to the strength of the partnership and the breadth of our investment proposition.”

Adviser numbers currently stand at 1,649 but the firm said some existing partners would be likely to be retiring earlier than expected.

The report read: “We anticipate that a small number of existing partners will retire earlier than previously expected this year, in advance of the changes brought about by the Retail Distribution Review and consequently we expect the 2012 net growth in the partnership to be slightly lower than recent years.”

The firm said it was “confident” it would be able to attract new partners to the business.

Regarding RDR qualifications, over 80 per cent of advisers at the firm have achieved their Level 4 qualifications and 11 per cent were within one or two exams. Good progress was being made on the new adviser charging regime, said the company.