Surging costs poised to hit wealth firm in new year

Wealth manager Charles Stanley has warned surging costs of regulation and falling commission income could hit full-year results if trading activity does not improve.

The City stalwart saw its shares come under pressure after cautioning it could struggle to meet fullyear expectations due to upcoming “headwinds”. It said it would face surging costs from new regulations over its second half, while commission income had fallen in recent months.

The warning overshadowed half-year results showing a 53 per cent jump in pre-tax profits to £6.9 million. Boss Paul Abberley said: “There is an unusually high level of regulatory change being introduced in 2018.”