One of the few remaining listed IFA firms has seen its pre-tax profit shrink by 20 per cent to in the first three months of the year, despite the firm reporting significantly higher recurring income as a result of its “successful” adaptation to the Retail Distribution Review.

Lyndhurst Financial Management, which is listed on the Icap Securities Derivatives Exchange, said that it has benefited from the successful completion of its project to prepare for the introduction of RDR, which has boosted recurring revenue by more than 14 per cent.

However, for the three months to 31 March 2013 the company’s consolidated financial results show a pre-tax profit of £19,306, down from pre-tax earnings of £25,378 for the same period in 2012.

The firm said it remains upbeat on future prospects for the sector, saying that in spite of “the fragile nature of the economy” it “continues to review a number of growth opportunities through both its financial services and corporate services businesses”.

Hertfordshire-based Lyndhurst, owned by I-Financial Service Group, is one of two firms listed on the Icap index, along with Worcestershire-based AFH Financial Group. The firms were previously listed on the Plus-SX small-cap exchange, which was sold to Icap last year.

Frenkel Topping and IFA network Lighthouse Group are the only other two listed IFA firms, with both being listed on the London Stock Exchange’s Alternative Investment Market.

Last year the Lighthouse Group announced plans to de-list which prompted fears about the the future of advisory firms looking to raise capital publicly.

The firm said that “none of the benefits traditionally associated with being admitted to trading on Aim have applied to the company for some considerable time”, which many took to mean that it would prove difficult for the firm to raise money on the market in the coming years.

However, in July Lighthouse Group shareholders voted against de-listing, despite pleas from management that investor appetite for IFA firms is low.

Earlier this month, US regulator the Commodity Futures Trading Commission launched an investigation into allegations of manipulation of a global benchmark operated by Icap that is used in the setting of prices for interest rate swaps.

Icap, an interdealer broker that manages the ISDAFIX benchmark, confirmed that it was “cooperating” with the “wider enquiry”.