£3M Lighthouse provision for complaints
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Lighthouse Group has made provision of £3.18m for client complaints for 2009, up from just £133,000 in 2008.
It says the costs will be covered through professional indemnity insurance and excess payments from advisers and expects the maximum cost to the company to be £247,000. Finance director Peter Smith says: “If markets fall, people generally look for someone else to blame and typically that comes back to the distributor.”
Lighthouse Group made a profit of £93,000 last year after losses of £8,494,000 in 2008. Earnings before interest, tax and depreciation rose to £1.1m from £553,000.
The group has £13.4m in the bank. It has been actively reviewing acquisitions but “very few” have been acceptable from a risk or valuation viewpoint.
Lighthouse says around 20 per cent of its advisers have the qualifications required by the retail distribution review, with another 60 per cent in training up to QCF level four.
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