St James’s Place chief executive David Bellamy has warned that rises in regulatory fees over recent years are unsustainable.
The FSA proposes changing the basis of calculating firms’ regulatory fees from number of approved persons to a firm’s income. It expects the measure to be implemented for 2013/14, with data based on income for the year ending during 2012.
Bellamy says: “We pay a reasonable and not insignificant amount in our contribution to the FSA already. Fees are going up and regulatory fees represent one of the fastest-growing items in recent years in terms of our expenses. I would not like to see them continue to rise at that rate.”
SJP paid £6.2m in regulatory costs in 2010, with £4.8m for a Financial Services Compensation Scheme levy mainly to pay for Lifemark claims.
Last week, SJP reported net inflows of £800m for the three months to September 30, up by14 per cent from £700m in the same period last year.
Funds under management are up by 8 per cent year on year from £24.8bn to £26.7bn while total single investments are up by 14 per cent from £1.1bn to £1.3bn.
Bellamy says: “The extremely volatile markets and uncertainty that has prevailed in recent weeks inevitably affect the timing of clients’ investment decisions and we are not immune from that.
“We aware of the short-term challenges but our business is in great shape and we remain confident about continuing to deliver on our ambitious growth targets over the medium term.”