Brewin Dolphin hit by new FSA adviser rules
BREWIN Dolphin, the 250-year old investment manager, yesterday said quarterly revenues shrank five per cent in the three months to the end of 2012 due to new payment rules from the City watchdog.
The firm, which traces its roots back to London’s first ever stock exchange, enjoyed good revenue increases annually but was hit in the short term by preparations for new Retail Distribution Review (RDR) rules, which are laid down by the Financial Services Authority.
It reported revenues of £67.8m for the fourth quarter, almost 14 per cent ahead of total revenues at the end of last year, but five per cent behind figures clocked at the end of September.
Preparations for the rules, which are now in force, curtailed commission fee income, hitting revenues over the quarter, it said.
Brewin said that while still investing in the business it was now focusing on cost control after the tough trading environment last year.
“Future efforts will not be limited to further investment in systems and people but will also encompass a programme of organisational efficiency, underpinned by rigorous and disciplined cost control,” it said.
Brewin’s money management arm, which runs investments on a discretionary basis, also steadied its assets under management, with the cash pot under its wing at £26bn, £100,000 up from last quarter, helped by positive market movements.