FSCS levy costs Charles Stanley 40% of profits

The cost of its contribution to the Financial Services Compensation Scheme has cost Charles Stanley 40% of its pre-tax profit in the last half-year.

In its results for the half-year to 30 September, the firm’s chairman David Howard said the FSCS levy has had a material impact on revenues. “Once again our results have been seriously impacted by large demands from the Financial Services Compensation Scheme, which have paid for the failings of businesses in quite different areas of activity. "This is really no more than a sort of tax which is levied on us in a way, and in amounts, that we cannot plan for. The demand in the latest half-year of £1.4m (first half 2011/12: £0.6m) has absorbed about 40% of our pre-tax profit.” The grou...