St James’s Place has revealed it was hit with a £4.8m Financial Services Compensation Scheme levy mainly to pay for claims relating to Lifemark.
In its annual results, published today, the firm posted an £84.2m profit before shareholder tax, up 69 per cent from £49.9m in 2009, on an IFRS basis.
On an EEV basis total profit was £455m, up 25 per cent on the £363m in 2009.
The firm says the £4.8m levy contributed to total regulatory costs of £6.2m for the year. The distribution part of SJP was hit with a £1.3m FSCS levy and the fund management side suffered a £3.5m hit. The total industry levy for Lifemark was £326m across advisers and asset managers.
Adviser number increased 6 per cent, from 1,464 to 1,552. In an update on the RDR, the firm says 700 advisers already have the required diploma qualification and a further 700 are within one or two exams of reaching it. The firm says the FSA has confirmed its current charging and remuneration charges will be allowed post-RDR.
Chief executive David Bellamy says: “We have had further clarity from the FSA regarding the requirements of vertically integrated firms in respect of the adviser charging rules and now know that essentially our current product charges and remuneration structures will be RDR compliant. The way we disclose charges and remuneration will naturally change, in line with the rest of the industry.”