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.”