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Cofunds blames ‘scale of regulatory change’ as profits fall to £4.2m

Cofunds has posted a pre-tax profit of £4.2m for 2013, a drop of 16 per cent from the £5m pre-tax profit posted in 2012. 

The platform was acquired by Legal & General in May. It says as part of the acquisition it is targeting annual savings of £11m by 2015.

Turnover increased by 7 per cent up from £73.8m to £79.7m, while administration expenses went from £71.9m to £77.8m.

Assets under administration increased 26 per cent from £47.6bn to £64.1bn. The directors say this is lower than expected and attributed it to “market conditions”.

Cofunds chief executive David Hobbs says: “Clearly the economy started to recover towards the end of the period and we experienced a strong increase in flows across all our channels – advisory and self-directed, institutional and bancassurance. We continued to grow our AUA through an impressive net sales performance and ended last year with £64.1bn, extending our position as the largest platform provider in the market by some considerable margin.

“While profits for 2013 are marginally lower than those reported in 2012, this is a reflection of the scale of continued regulatory change the larger established platforms have to undertake. We are investing for future growth and are pleased we have maintained our profitability for the sixth year and remain one of a handful of platforms that make a real profit.”

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Comments

There are 2 comments at the moment, we would love to hear your opinion too.

  1. Julian Stevens 2nd April 2014 at 9:25 am

    And yet the government has recently stated that the FCA’s latest gaffe has undermined its reputation for regulatory stability (and competence). So who’s really got their finger on the pulse?

  2. Tells a story this doesn’t it !

    Turnover up 7%
    AUA up 26%

    Profit “DOWN” 16%

    Is it not the regulators aim to provide stability and competiveness ?

    If the cost of regulation itself and the provision of being compliant is spiralling out of control then this does not provide a stable and competitive market place ?

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