River and Mercantile makes £1m provision for FCA competition probe; Responds to Rodrigs departure

Results of investigation still uncertain

River and Mercantile (R&M) said today it has made a £1m provision, with a £0.5m reduction in variable remuneration expense leading to a net impact on profit before tax of £0.5m, in light of the FCA's recent competition investigation.

The firm was among four issued with a statement of objections by the FCA in November as potentially breaking competition law, with the groups now given the chance to respond to the claims. R&M chairman Jonathan Dawson commented: "While the outcome for the previously announced FCA competition matter is still uncertain, the board believes that it is prudent to recognise a provision together with a reduction in variable remuneration expense." R&M also recently appointed former Aviva Investors chairman John Misselbrook as chair of its newly-formed risk committee, which was set up after th...