View more on these topics

Foster Denovo sets aside £2m for client redress

Foster Denovo chief executive Roger Brosch

National IFA firm Foster Denovo has set aside a total of £3.3m for liabilities in 2012, including £2m to pay client redress.

Despite the provision, the company has increased pre-tax profits to £947,358 for the year ending 31 December 2012, up a massive 72 per cent from £551,975 in 2011.

Foster Denovo’s annual results, published today, show a total provision of £3.3m for 2012, made up of £2m to cover the cost of claims relating to unsuitable advice, and £1.3m relating to an expected clawback bill on indemnity commission.

The company says it expects to use most of the £2m to cover client redress claims in the next financial year, while the £1.3m set aside to pay clawback commission is expected to be used over the next four years.

It has not disclosed the nature of the claims payable.

In its results, Foster Denovo says: “In the normal course of business the company receives queries and complaints regarding the sale of financial products. Where appropriate these claims are investigated in accordance with the company’s procedures and provision is made for potential liabilities which may arise in respect of them.

“The provision is made gross of the amount recoverable from professional indemnity insurers and/or the financial adviser responsible for giving advice about which the complaint was made.”

The results also reveal that Foster Denovo paid £350,000 to acquire the corporate division of wealth manager Barker Poland in June. Foster Denovo also paid £35,000 for an unnamed “additional minor acquisition”.

The company says income was boosted last year by improved trading conditions in 2012, and expects to make a profit this year.

Staff costs, including directors, rose from £3m to £3.9m during the year. Directors’ pay and benefits went from £542,290 to £553,885 excluding pension contributions. The pay and benefits of the highest paid director went from £187,262 in 2011 to £217,585.


The Co-op Bank may need taxpayer support

Co-operative Bank chief executive Barry Tootell has quit with immediate effect after reports the bank may need taxpayer support as it faces losses from new writedowns on bad debts and expenses related to its 2009 acquisition of Britannia Building Society.  According to the Telegraph, Moody’s has downgraded The Co-op’s credit rating, warning it saw “moderate […]


CBI: UK economy ‘moving from flat to growth’

The Confederation of British Industry is expecting the UK economy to continue to grow this year and expand by 2 per cent in 2014, according to its latest economic forecast. GDP growth is expected to be 1 per cent in 2013, with a gradual increase at a quarterly rate – climbing from 0.3 per cent […]


BSA chairman: Help to Buy should not become permanent feature of the mortgage market

Building Societies Association chairman David Webster has urged the Government to ensure its new £130bn mortgage indemnity insurance scheme does not become a permanent feature of the mortgage market. Speaking today at the BSA’s annual conference in Harrogate, Webster called on the Government to form an “exit plan” to ensure it is not permanently supporting […]


Queen’s speech focuses on deregulation, pensions and LTC funding

The Government has set out its legislative agenda for the next year with bills on deregulation, pensions and long-term care funding in today’s Queen’s speech. At the state opening of parliament, the Queen said her Government will build a stronger economy and a fairer society that will prioritise increasing Britain’s competitiveness and reducing the deficit. […]

Unfinished business?

Pension specialist Fiona Tait gives an update on three big announcements from the 2016 Budget – Pensions Advice Allowance (PAA), the Lifetime ISA (LISA) and the pension dashboard. £500 Pensions Advice Allowance What’s new Under current rules it is possible to deduct an adviser charge from a defined contribution pension fund to pay for financial […]


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