A wealth management firm had to cough up £20.1 million to the Financial Services Compensation Scheme last year, it revealed today.

St James’s Place was told to pay 14.2 million more than the year before - significantly affecting the firm’s financial results.

In 2014 the levy it paid was £5.9 million.Profit before shareholder tax was £151.3m, which dropped from £182.9m.

Underlying profit before shareholder tax was £163.7m – down from £173.6m.

A results report stated: “Both measures have been impacted by the £14.2 million increase in the FSCS levy together with the higher costs associated with our investment in laying the foundations for the future. In addition, the Profit before shareholder tax result has also been adversely affected by a reduction of £21.7 million in contribution from movements in the DAC/DIR/PVIF adjustments.”

But the underlying cash result for the year was up 5% to £182.1 million, reflecting the strong underlying growth in income from Funds under Management (up 18%), it said.

Higher costs for strategic investments in the business to lay foundations for the future also added to the hit on the profits, the company said.

This included the academy at £5.5 million – up from £4.1 million - Asian operations at £7.5 million – up from £3.6 million - and back office infrastructure development at £18.1 million – up from £11.9 million.

David Bellamy, chief executive, said: “We see a growing demand for sound, personal, financial planning advice as individuals recognise the financial implications of increased life expectancy, whilst being faced with increasingly complex options in respect of their investments.

“That increasing demand, coupled with the ongoing growth in the size of the Partnership, means that we remain well placed to continue our growth in 2016 and beyond, in line with our medium term objectives.”