Brewin Dolphin Plc, a British fund manager and stockbroker, said fiscal first-half profit declined 19 percent after it paid 6.1 million pounds ($9.9 million) to compensate clients of an unrelated company.
Net income fell to 8.3 million pounds in the six months ending March 27 from 10.3 million pounds in the year-earlier period, the London-based firm said in a statement today. Funds under management rose to 25 billion pounds from 23.2 billion pounds six months earlier.
Brewin Dolphin made the contribution to the Financial Services Compensation Scheme to pay clients of Keydata Investment Services Ltd., an investment company that failed in 2009. The U.K.’s Serious Fraud Office this month said it had “insufficient evidence to secure a prosecution” following its investigation into Keydata’s collapse.
“We are pursuing an active role with the regulator and the Treasury regarding the need to put in place proper mechanisms to avoid in the future such substantial levies on your company and our peers,” Brewin Dolphin said in a statement today.
The shares gained 2.2 percent to 169.6 pence at 1:25 p.m. in London trading.