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Watchdog requests rise to £475m

Aberdeen Asset told to up minimum capital

Martin Gilbert BBCThe financial regulator has asked fund manager Aberdeen Asset Management to up its minimum level of capital following a review.

The move by the Financial Conduct Authority (FCA) will see Aberdeen’s total regulatory capital requirement increased to around £475 million from £435 million, including a self-imposed headroom of £100 million.

In a statement to the stock market Aberdeen said that the group’s “available capital remains comfortably above this new minimum requirement”.

The group said that since the nature of the risks covered by part of the FCA increase were similar to those previously provided for by Aberdeen through its own headroom, the board has decided to reduce it on an ongoing basis.

Latest financial results from the fund manager showed it was continuing to suffer from weak emerging markets and the withdrawal of billions of pounds from its funds.

Pre-tax profits fell to £98.8 million in the six months to the end of March, down from £185.4 million in the same period last year with revenues dropping by 20% to £483.6 million.



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