We use cookies to improve site performance and enhance your user experience. If you'd like to disable cookies on this device, please see our cookie management page.
If you close this message or continue to use this site, you consent to our use of cookies on this devise in accordance with our cookie policy, unless you disable them.

In association with

Home > Your Industry > Companies & People

By Michael Trudeau | Published Oct 01, 2012

Charles Stanley cites £1.4m FSCS levy as costs rise

Investment adviser and stockbroker Charles Stanley has added to criticism of the funding model of the Financial Services Compensation Scheme after projecting a 10 per cent rise to the levy the company pays this year.

In a trading statement posted to the London Stock Exchange, the company says costs have increased in the six months to 30 September 2011. While this includes the costs of advisers and adviser teams moving their assets to the company while still within their contractual periods of non-competition, the increase costs also include a £1.4m contribution to the FSCS levy in the first six month of the financial year alone.

James Rawlingson, co-director of Charles Stanley Group, said: “It’s extremely disappointing. It’s a very material cost for us. The principle of charging happy, healthy firms for the failure of others seems to be a poor principle.

“It seems to be leading to a permanent rise in cost base around the industry. The principle is not only unfair but it’s penalising the clients of well-run firms.

“Part of the challenge is managing expectations of the marketplace and clearly the people who hold shares in large firms, which may sit in their pension portfolios, expect a predictable return.

“I understand our regulator trying to force the industry to bear the costs of itself but they are painting everybody with the same brush.”

The company also reported falling revenues earlier this summer when it announced results for the three months to June 2012 (26 July).

visible-status-Standard story-url-FTA charles stanley MT 011012.xml

Most Popular
More on FTAdviser