Shares in financial services group IFG slumped more than 7 per cent on Friday after the group issued a profit warning.
The company said that profits would be materially lower than expected as a result of accelerated restructuring of its James Hay business and legal costs.
The company said it was engaged in ongoing discussions with British Revenue and Customs to clarify any potential sanction over legacy non-standard investments in which some of its James Hay clients invested. It added that due to the complexity of the case, any financial exposure was “ unlikely to be resolved” by the time it announces interim results at the end of August.
“As a result of the above matters, the level of exceptional costs that will be incurred in 2017 is expected to increase materially, which will lead to reduced statutory profits for the group,” the company said in a statement.
The company said that, between James Hay and its Saunderson House financial advisory business, the group now had more than £29 billion in assets under management, up from £24.4 billion at the same point last year.
