The UK wealth manager saw its 2015 results negatively impacted by a significant surge in its contribution to the Financial Services Compensation Scheme.

St James's Place's pre-tax profits took a hit in 2015 after a £14.2 million ($19.8 million) increase in the firm's levy to the UK's Financial Services Compensation Scheme.

St James's Place was charged £20.1 million by the FSCS, the UK’s statutory compensation scheme for customers of financial services firms that is funded by such levies. The company also saw higher costs associated with several investments, including £5.5 million into its Academy programme and £7.5 million into its Asian operations and £18.1 million into back office infrastructure development.

Its profit before shareholder tax was £151.3 million in 2015, down 17 per cent from £182.9 million the previous year. However, on an embedded value basis, operating profit was up 11 per cent year-on-year at £660.2 million. Underlying post tax cash result stood at £182.1 million compared to £173.8 million in 2014, allowing the company to declare a full-year dividend of 27.96 pence per share – up 20 per cent year-on-year. Meanwhile, funds under management grew from £52 billion to £58.6 billion.

The London-listed company announced it had received regulatory approval for the acquisition of Rowan Dartington, the Bristol-based fund manager it agreed to purchase last summer for up to £34 million. It also plans to open a new office in Canary Wharf in May, adding to its current network of 21 locations across the UK.

“Despite the continued uncertainty in world stock markets, the strong growth across all key areas once again demonstrates the resilience of the business and delivered another record year of new investments, funds under management and operating performance,” said chief executive, David Bellamy.