Merrill Lynch is to focus an assault on the top end of the IFA market under new head of retail business Richard Royds, the successor to Michael Jones who left in January.

“The key growth area for us has got to be wealth management, the key distributors, the banks and life companies and the top end of the IFA market,” Royds said.

“That is where the influence lies. A lot of IFAs of old are now ‘wealth managers’ and that is what we see as our core market.”

Royds said that as an investment house it was not the aim to be all things to all people but to identify a target market.

“We are now on a huge number of platforms and we can effectively access the IFA market that way. In terms of product roll-out much still depends on whether a depolarized environment emerges and changes to distributor status are implemented.

“But I think we would look to introduce products designed with UCITS III in mind. You can expect guaranteed products to be an area for expansion. With structured products we will look to develop this side of the business by working with Merrill Lynch Investment Bank.

“An ungeared long-short fund is likely further down the line too. All these projects are under analysis rather than tied to a committedlaunch date. We are testing these strategies internally. In terms of bringing offshore funds onshore, there are enormous opportunities if the Chancellor decides to drop distributor status.”

Royds said that in the even that Gordon Brown committed the UK to abandoning the status, Merrill Lynch had the opportunity to potentially bring 50 funds into the UK market.

As for potential acquisition Royds remained noncommittal. “Like most companies we always look at opportunities to acquire but there is nothing in the drawing board at the moment. You don’t just grow assets for assets sake, you have got to have an efficient and profitable business. We do not follow the theory that you pursue profitless growth for market share. On the corporate side, it is too early to talk about acquisition.”

Royds did confirm, however, that the fund rationalisation carried out by his predecessor Michael Jones had run its course.