Provision knocks DBS profits

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The Independent Online
DBS Management, the network of independent financial advisers, yesterday saw its share price rise by 8 per cent despite a provision for pension mis-selling which ate up 90 per cent of its pre-tax profits.

The company said it had now devoted pounds 4.5m to the cost of carrying out its review of mis-sold personal pensions. In September, the network was fined pounds 425,000 by the Personal Investment Authority - one of the largest fines it has imposed.

The DBS network, which carries out compliance work on behalf of 1,844 firms of independent advisers, said it was now devoting substantial resources to the review and was paying a firm of management consultants to assist it.

DBS announced it was increasing its interim dividend by 17 per cent. This was despite the provision for mis-selling, which depressed earnings for 1997 to 0.6p per share, down from 4.5p.