View more on these topics

Caerus profits down 76% after Paradigm deal

Profit at the advice firm went from £1.23m in 2011 to £300,000 in 2012.

Pre-tax profit at Caerus Capital Group fell 76 per cent to £300,000 in 2012 following the acquisition of Paradigm Partner’s network arm Paradigm Financial Advisers.

The company made a profit of £1.23m in 2011, which included £600,000 from a previous disposal of assets.

Caerus agreed the deal to acquire Paradigm Financial Advisers in October 2012. It is currently awaiting regulatory approval to complete the transaction.

Last year Caerus also sold its majority stake in Allium Capital, which helped design the funds behind its subsidiary Caerus Portfolio Management.

Total turnover rose 7 per cent from £28.3m in 2011 to £30.4m in 2012.

Administrative expenses went up by 27 per cent from £4.1m to £5.3m, while wage costs shot up from £500,000 to £1.7m.

Average gross revenue per adviser dropped by 3.5 per cent, falling £6,000 to £164,000 for 2012.

Caerus chief executive Keith Carby says: “Despite the marginal reduction [in revenue] from the previous year, which the directors believe to be partly attributable to the ongoing harsh trading environment and the high level of adviser focus on RDR preparation throughout the year, the level of adviser productivity has exceeded company forecasts.”

Investment Quorum chief executive Lee Robertson says: “Many firms have seen profits hit as a result of the RDR and larger companies have probably been hit disproportionately hard by the regulation. That is because they have so many moving parts, all of which need to be correctly aligned and adapted around RDR.”



FCA: We are alert to RDR advice gap concerns and want your solutions

FCA chairman John Griffith-Jones says the regulator is monitoring the post-RDR advice gap “extremely closely” and recognises industry concerns over its impact. Speaking at the Wealth Management Association conference in London this morning, Griffith-Jones said he was looking to the industry to provide advice gap solutions. Last month FCA chief executive Martin Wheatley said he […]


David Ingram on improving professionalism and encouraging pro bono work

Two watchwords will be at the forefront of David Ingram’s mind as he starts his one-year presidency of the Personal Finance Society – trust and professionalism. This year the PFS launched its Consumer Confidence Campaign to try to improve awareness and trust in finance advice and it is this work that Ingram is keen to […]

Lifetime ISAs – International Evidence

By Fiona Tait, Pensions Specialist Since the announcement in March, the Lifetime ISA (LISA) has attracted controversy. Heralded as a saviour for the self-employed and the young wanting to get on the housing ladder, the new LISA risks adding confusion for savers trying to fully understand the benefits of new workplace pension savings through auto-enrolment. To […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers. Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm