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AWD blames regulatory costs for earnings drop

Stephen Kavanagh

AWD Chase de Vere saw earnings before interest and tax fall 19 per cent to £1.01m in the first quarter of 2011, compared to £1.24m for the same period in 2010.

The firm is attributing the drop in earnings to the increased costs of regulation.

AWD saw six advisers leave the firm as numbers fell from 199 in Q1, 2010 to 193 in the first quarter of this year.

AWD turnover in Q1, 2011 increased 8 per cent to £10.55m, compared to £9.74m during the same period the previous year.

AWD Chase de Vere chief executive Stephen Kavanagh (pictured) says: “These results are a pleasing reflection of the progress that AWD Chase de Vere continues to make.

“I fully expect 2011 to be another year of positive growth and profitability for the company as it pursues its goal of becoming the leading firm of IFAs in the UK.”

In April, AWD confirmed it has had nine Keydata complaints referred to the Financial Ombudsman Service and three have been upheld. It is contesting the upheld cases and is still awaiting decisions for the remaining six. In January, the firm agreed to pay full compensation to a Sipp client that it advised to invest £200,000 in Lifemark through Keydata.


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There are 4 comments at the moment, we would love to hear your opinion too.

  1. 10.55 million turnover divided between 193 advisers is a turnover of less than £54k per adviser!

    That’s TURNOVER not even what’s left over for profit after paying salaries of the advisers (or are they all commissioned?

  2. @Anonymous 1.15 pm

    £10.55 is for the quarter. Therefore average turnover is over £200k pa.

    I think alot of advisers would be pleased with that???

  3. How much of that income is derived from clients currently receiving advice as opposed to those acquired over the years and ‘orphaned’?

  4. I was Anonymous | 3 May 2011 1:15 pm

    Yep, missed it was per Q. I’d be pleased wityh turnover of £200k per RI. A good year for me would be about £130k per RI although when I worked for a bank in the 90’s we had target commission eranings per adviser (which would be turnover effectively) of £100k, which pro rate would be a lot higher than £200k now….

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