Brooks calls peak of regulatory costs as profits grow

Brooks Macdonald has claimed regulatory costs in the industry may have peaked as it revealed profit growth of 22 per cent and asset growth of 45 per cent for the 12 months to June 2013.

Chris Macdonald, chief executive of the discretionary manager, said profits may have peaked “as a percentage of turnover”, but he said the industry now faces the issue of whether to pass the costs on to clients.

Brooks saw its assets under management rise to £5.1bn by the end of June through both organic growth and the acquisition of Spearpoint, and Mr Macdonald said it had seen further growth in funds under management in the past few months.

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He said he was “cautiously optimistic” for the coming year, anticipating a “more stable background for regulatory change”, though he said there would continue to be margin pressures on non-bespoke services.