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Rathbones' FSCS bill soars to seven figures
by Sarah Miloudi on Feb 20, 2013 at 07:50
Rathbone Brothers revealed its Financial Services Compensation Scheme (FSCS) bill rose sharply in 2012, contributing to a dip in profit over the year.
The private client stockbroker paid £1 million to the scheme in 2012 on the back of large number of failures in the industry and levy restatement exercises. The figures was around £600,000 higher than 2011.
Rathbones has spearheaded a campaign for a fairer FSCS levy. Back in February 2011 its chief executive, Andy Pomfret (pictured), led a group of eight wealth management bosses who demanded an independent inquiry into the collapse of Keydata after facing steep FSCS interim levy bills.
In response to last year's sharp rise in costs, Rathbones told the market today: 'We have been involved in the consultation on how the FSCS is funded in the future and await the final outcome of this consultation process.'
Other highlights from the results included the hire former Williams de Broë chief executive Philip Howell.
Howell will join the discretionary firm as deputy chief executive next month. He left Williams de Broë in May last year following the acquisition of its parent, Evolution Group, by Investec.
Williams de Broë has since been rebranded Investec Wealth & Investment.
Rathbones chief executive Andy Pomfret said Howell’s ‘considerable experience will add to the strength and depth of our management team’.
Meanwhile the headline figures showed profit before tax of £45.1 million for 2012, a 2.4% drop from the £46.2 million reported in 2011. Funds under management rose 13.4% from £15.9 billion at the end of 2011 to £18.0 billion at the end of December.
The FTSE 100 rose 5.9% during that period, with Rathbones reporting a 6% net increase in assets.
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