Transact profits slip £3m after FSA fine

Wrap Transact suffered a £3m drop in profits last year after it was hit by an FSA fine for client money breaches.

The wrap reported profits before tax of £14.6m for the year ending 30 September 2011, compared to £17.6m for the same period the previous year.

The fall in profits comes after Transact was hit with a £3.5m FSA fine in December for client money breaches.

Head of marketing Malcolm Murray (pictured) said the results were also affected by a decision in 2010 to reduce its annual charge to 0.55% from 0.6%.

He said the wrap is "pleased" with the underlying growth of the business when considered against the FSA fine and reduction in annual charge.

Funds under management in the period increased £1bn to £10.1bn in 2011. Transact said the number of advisers using the wrap also increased, from 4,500 to 5,000 during the year.