2nd Sep 2019 12:17
(Correcting that BP Marsh will publish its half-year results on October 15 and not October 14 as originally reported.)
(Alliance News) - Financial services investor BP Marsh & Partners PLC on Monday said investee company LEBC Holdings Ltd has chosen to stop providing defined benefit pension transfer market advice.
Shares in BP Marsh were down 17% at 221.00 pence in London at mid day.
BP Marsh holds a 59% stake in financial advice company LEBC and expects the decision will reduce LEBC's value
The voluntary decision follows a UK Financial Conduct Authority review of LEBC, which BP Marsh said "focused on the division of the business that provides [defined benefit] pension transfer advice".
BP Marsh said it "has assessed the potential impact of this decision on the overall net asset value of the group" and noted that, despite the hit to LEBC's valuation, LEBC is "working on a number of initiatives" and has already started implementing some of them.
Therefore, BP Marsh "will work closely with LEBC's management team to return LEBC to the position it was in before the FCA review".
"BP Marsh has a diverse portfolio and the strong performance delivered by a number of its investee companies in recent months means that the board believes that the company will emerge in a satisfactory position under the circumstances as regards its financial results for the six months ended 31 July 2019," the company said.
BP Marsh's results for its half year ended July 31 will be published October 15, with a trading update to go out in early September.
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