Net fund sales slumped by 41 per cent during the third quarter, compared with the previous quarter, dropping to £2bn, according to the Fundscape/Matrix Solutions distribution report.
Gross sales of £22.1bn across the fund distribution network were reported during the third quarter, down 5 per cent compared with the second quarter.
Fundscape director Bella Caridade-Ferreira says: “In much the same way that the streets of London were quiet when the Olympics came to town, so too was the fund industry.
“Eurozone fears and economic uncertainty also played a big part, but the key driver was that intermediaries had begun to concentrate on their RDR preparations in earnest.”
The report revealed gross sales through IFAs and wealth managers were down 14 per cent and 9 per cent, respectively, compared with the second quarter.
Caridade-Ferreira adds: “The only channel that saw flows rise in the third quarter was the direct-to-consumer (D2C) channel, which was up by 9 per cent.
“The strength of the D2C segment underlines expectations of an increase in this type of business post-RDR as a result of a switch to fee-only advice, and an increasing proportion of consumers who are unable or unwilling to pay for advice.”