17th Oct 2019 12:07
(Alliance News) - Stockbroking and investment company Fiske PLC on Thursday took aim at European and domestic regulators arguing that changes in the wealth management market have led to increased costs for customers.
Ahead of the company's annual general meeting on Thursday, Executive Chair Clive Harrison lambasted what he described as the largest changes to wealth management sector "in a generation". He argued that measures have actually raised the cost for the consumer.
Harrison said: "In some cases the changes are inspired by European regulators and in others by our own regulator the Financial Conduct Authority. The jury is still out on whether they will achieve their professed aim, the protection of the consumer, but it is certain that they have raised the cost of that protection by a multiple. And that ladies and gentlemen is a large part of the explanation for the poor results we are reviewing today."
In August, the company reported a 2.1% revenue fall to GBP4.3 million from GBP4.4 million. Operating expenses in the year to May 31 rose by 25% to GBP5.0 million from GBP4.0 million.
Current trading is in line with expectations however, Harrison added.
He explained: "We are adjusting as rapidly as possible to the new environment but at a cost. Ultimately of course the costs will be passed on to the consumer, but we have sought to minimise raising our charges to our clients by improving our efficiency and our services, but an increase in charges is inevitable.
"There is, however, a glimmer of light at the end of the tunnel. We expect to emerge leaner and fitter, with our sound balance sheet and our very exciting and significant investment in the shares of Euroclear."
Turning to Brexit, the executive chair said possibly too much time has been devoted to asset the impact that it would have on the company.
He said: "In our case of course the full impact is uncertain, but would seem likely to be modest."
Shares in Fiske were untraded in London on Thursday morning, last quoted at 61.50 pence each.
By Eric Cunha; [email protected]
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