Transact profits fall after FSA fine

4 January 2012 8:50 am | By Sam Macdonald

Transact profits fell 17 per cent, from £17.6m to £14.6m, in the year ending September 2011 due to its recent FSA fine.

The platform was fined £3.5m in December over failures in protecting client money and failing to have adequate trust documentation in place for three of its 28 client bank accounts following an FSA visit in May 2010. The fine was taken into account for the reporting period ending September 2011.

Transact’s funds under direction grew 10 per cent, from £9.1bn to £10.1bn, over the period while the number of clients on the platform increased 11 per cent from 85,000 to 94,000.

The number of registered advisers also grew 11 per cent from 4,500 to 5,000 in the same period.

A statement in Transact’s accounts says: “During the year, the FSA concluded that the company had breached some of its rules in relation to client money. On December 8 it announced that it was fining the company £3.5m. The company has already put in place new records and processes to comply.”

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