The burden and level of regulation for financial advisers will only grow, Helm Godfrey has warned in its latest report and accounts.
According to the firm’s strategic report for the year ended 31 December 2014, UK and European authorities seek to increase the protection to retail customers, which will only augment the level of regulation on financial advisers.
In addition to this headwind, the report added that the financial advisory firm was facing other industry-wide risks, including adverse changes in the general economic climate and a decline in demand by UK consumers for retail financial services.
It also warned of a reduction in employee benefits advice being sought by corporate clients.
The report said there was also a risk from competition from the fast-growing direct to consumer propositions.
However Graham Cross, chief executive of the London-based firm, said he believed that despite these risks, the restructuring carried out during 2014 has helped to set Helm Godfrey on a strong footing.
He said: “Despite the difficult economic conditions and significant restructuring in 2014, the company still managed to increase its turnover.”
Indeed, he pointed to the introduction of pension freedoms and the expansion of auto-enrolment as two “extremely positive” trading conditions, which he said was already generating “increased demand for our services”.
According to the accounts, turnover rose by £355,536 to £8.15m in 2014, up from £7.79m in 2013.
Profit before tax improved to £461,158, a significant increase on 2013’s figure of £55,145. After tax, the profit for the financial year stood at £309,230, compared to just £27,105 in 2013.
Helm Godfrey’s cash reserves have also more than doubled, rising from £359,632 in 2013 to £835,333 in 2014.
In September 2014, the firm created a succession programme, hiring five level-four qualified paraplanners to work on a rotational basis with the existing advisers for a period of nine to 12 months.
After this time, if the paraplanners wish to become financial advisers, Helm Godfrey will support them to become chartered and obtain their level six qualification.
At the start of 2014, Helm Godfrey restructured to bring the two sides of the business together: employee benefits and advisory business.
Mr Cross confirmed that it would progress with its training programmes, as well as recruiting staff.
He said: “We see great opportunities for the development and roll-out of our flexible employee benefits platform. We will also be investing further in our in-house staff training programme.
“As a growing business, we will be looking to recruit staff, in all areas from advisers to administrative support roles.”
