CHARLES Stanley has criticised the levy it must pay into the Financial Services Compensation Scheme, which knocked 40 per cent off its pre-tax profit for the first half of the year.
Sir David Howard, chairman of the stockbroker and investment manager, said the £1.4m it gave to the FSCS goes towards funding compensation linked to areas of business unrelated to his firm.
“This is really no more than a sort of tax which is levied on us in a way, and in amounts, that we can’t plan for,” he said.
The FSCS was set up in 2001 to ensure customers of failed financial firms do not lose all their money. It is funded by levies on FSA-registered companies.
But several investment management firms including Hargreaves Lansdown and Rathbone Brothers have hit out at the amounts they must contribute.
Charles Stanley yesterday reported flat half-year revenues of £60m, while fees rose 11 per cent to £36.8m.
Pre-tax profit slumped 35 per cent to £3.4m, in part due to the FSCS levy and restructuring costs.