View more on these topics

Cofunds looks to remove restriction on paying divi

Cofunds is preparing to free itself to pay dividends to share-holders.

The platform provider has filed papers at the High Court in London as it seeks to address an “accounting legacy” which currently prevents the payment of dividends.

A spokeswoman says: “Cofunds has made profits for three successive years and it is now well capitalised.

“We continue to grow profitably and, while investing for the requirements of the RDR, we are also taking steps to ensure that the legal structure of the company allows us to commence dividend payments in the future. We would only do this when the company and the shareholders deem it appropriate. “In order to be in a position to do this, we are restructuring our capital to iron out an accounting legacy and have filed the appropriate papers at the High Court.”

The platform recorded profits of £7.9m last year and chief executive Martin Davis says he expects the profit figure to be higher this year.

It is understood that L&G is still investigating a possible takeover of Cofunds, although the platform recently insisted it is not for sale. L&G currently holds a 25 per cent stake in Cofunds.

Tech firm IFDS has a 24 per cent stake in the firm, Threadneedle has a 20 per cent share, Newhouse Capital Partners 18 per cent, Jupiter 10 per cent and Prudential a stake of 3 per cent.

Radcliffe & Newlands chartered financial planner Mel Kenny says: “Given that Cofunds is now in profit, it seems like a sensible decision to remove any restrictions to paying out dividends. Ultimately, if a business is doing well and making profits, the people who have invested in it deserve to be rewarded.”

Recommended

Barclays faces £70m lawsuit

Barclays is facing a £70m lawsuit over claims it misused confidential information from a potential client to seal a takeover deal, according to reports. The Financial Times reports that UK advisory and trading firm CF Partners came to Barclays in September 2008  for help with financing a potential deal with Swedish carbon trading company Tricorona. […]

Phoenix owns up to ETV comms blunder

Phoenix has been forced to apologise after sending thousands of deferred pension scheme members an enhanced transfer value offer letter that values the members’ defined-benefit entitlement at the wrong date. Earlier this month, Money Marketing revealed the insurer had contacted 3,200 deferred members of the Phoenix DB scheme offering up to £2,000 in cash as […]

S&P downgrades major high-street banks

Standard & Poor’s has downgraded the long-term credit ratings of several major banks including Barclays and HSBC following changes to its ratings criteria. The BBC reports that Bank of America, Goldman Sachs and Citigroup have had long-term ratings downgraded to A- from A by the ratings agency. Morgan Stanley, Barclays, HSBC, Commerzbank and UBS were […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    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

    Email: customerservices@moneymarketing.com