Mr Cunningham said: "If we recruit new advisers they will add to our costs as they are employed and will neither share nor contribute to the FCA levies or PI costs unless they suddenly start producing new business, which is not usually the case."
While acknowledging the upfront cost of bringing on new advisers, Mr Mepsted added: “The reason for them coming into the business is to grow the client base and our reach over time which ultimately contributes incrementally towards all costs.
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“We take this longer term view that the growth we achieve with new advisers outweighs expense incurred for FCA levies and PI.”
chloe.cheung@ft.com
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