View more on these topics

F&C set for £12m of cost cuts

F&C Asset Management has announced plans to cut the annual costs on its business by £12m.

The firm is set to appoint a new outsourcing provider in a bid to diversify its business and cater for new client needs.

F&C says the appointment will affect approximately 110 staff, which represents around 70 per cent of its existing operations staff, many of which are expected to transfer over to the appointed provider. The group will reorganise its remaining business processes around the outsourced model. F&C says the restructuring programme will create an operational cost base that varies with assets under management and transaction levels.

F&C says that the restructuring programme will reduce costs by at least £9m, with saving starting in the second quarter of 2011. A further £3m will be made through a downsizing of its premises requirement due to the smaller headcount.

The asset manager says it will continue to review further opportunities for cost reduction, including potential product mergers.

Earlier this month, F&C has called on shareholders to vote against Sherborne Investors’ plans to remove chairman Nick MacAndrew and Brian Lacombe from F&C’s board.

Sherborne, which has built up a 17.5 per cent stake in the asset manager, wants to appoint founder Edward Bramson as well as Ian Brindle and Derham O’Neill to the board, with the hope of Bramson taking on the chairman’s role.

Sherborne has requisitioned a general meeting to propose the changes on February 3.

F&C says its current strategy is working and it believes that these calls by Sherborne are damaging and destabilising to the business.

F&C chief executive Alain Grisay says: “After several months of careful research and due diligence I am pleased we can announce this major step in ensuring we have a more flexible cost base which can adjust better to accommodate changes in our business mix. These developments will ensure we have the right operational platform to respond effectively to the evolving needs of our clients and as we continue to diversify the business beyond its historic focus on insurance mandates.”

Recommended

7

Consultants costing regulator £1m for work on the RDR

The FSA has paid almost £1m to external consultants for work related to the RDR. The regulator has made 11 payments totaling £986,819 since 2007, according to a Freedom of Information request. The payments include a £277,916 single payment to market research agency BMRB in 2010 and a £134,660 payment to Deloitte the previous year. […]

Cazenove Capital appoints non-executive director

Cazenove Capital has appointed Rupert Tyer as non-executive director to the board of Cazenove Capital Holdings.  Tyer has recently retired from Cantillon Capital Management, where he was a founding partner of the London and New York based global equity boutique. He was also been managing director at Lazard Unit Trust Managers, where he was responsible […]

1

N&P in talks with Aviva over tied advice deal

Aviva is in advanced talks with Norwich & Peterborough Building Society over a move that would see N&P IFAs becoming tied agents for the provider. The agreement is likely to be structured in a similar way to existing partnerships with groups like Principality Building Society, where branch advisers distribute Aviva products. Norwich & Peterborough’s 21 […]

2

Barclays says taxpayers should not bail out banks

Taxpayers should not bail out banks that get into difficulties, according to Barclays chief executive Bob Diamond. Giving evidence to the Treasury select committee this morning, Diamond said banks which run into trouble should be able to be wound down by the regulator. He said: “No banks should ever be a burden on the tax […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment