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(Alliance News) - Brooks Macdonald Group PLC said Friday it "welcomes" the outcome of the Jersey Financial Services Commission's look into the Code of Practice for investment businesses in relation to historic investments.
"The group announced in July 2017 its decision to deal proactively with certain legacy matters arising from the former Spearpoint business which it acquired in 2012," Brooks said.
It continued: "These matters related to both a number of portfolios managed formerly by Spearpoint, then by [Brooks] international Jersey branch, and a Dublin-based fund, for which Spearpoint acted as investment manager. While the group accepts no legal liability in these matters, Brooks Macdonald is committed to treating customers fairly and seeking to protect its clients' best interests."
Brooks said it had "developed a plan" to resolve the issue, and had made a total provision of GBP12.0 million for the two financial years that ended June 30, 2017 and 2018.
As at this past June 30, the remaining balance of the provision was GBP600,000, Brooks noted.
It continued: "The group is not making a further provision in relation to these matters and it intends to deal with any residual issues as part of business as usual. The group has continued to be in discussions with all stakeholders, including relevant regulators, as it seeks to bring these matters to a conclusion."
Brooks "fully acknowledged" that these breaches occurred, but is "pleased to have resolved these discussions with the Commission".
Chief Executive Caroline Connellan added: "I am pleased the JFSC's investigation has concluded and that both our co-operation and the significant investment and improvement we have made in our risk management and operational framework have been recognised. Since we first announced our response to the legacy issues in July 2017, we have sought to deal proactively with these matters in a way that reflects our deep commitment to treating customers fairly. Today's announcement supports the continued reinvigoration of our International business under the leadership of Andrew Shepherd."
Shares in Brooks Macdonald were 1.2% lower in London on Friday at 1,630.00 pence each.
By Paul McGowan; paulmcgowan@alliancenews.com
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