- Investment manager River and Mercantile Group cut the amount it may pay in penalties related to a competition probe, while reporting a rise in year-to-date assets under management.

The company reduced amounts recognised in respect of the Financial Conduct Authority probe to a provision of £109k, down from a provision of £1m.

The move came after the company received fresh guidance from the FCA on the likely quantum of the penalty, should one be imposed.

The regulator was currently investigating a potential breach of competition law related to the pricing of shares in two capital raisings.

'The group continues to co-operate fully with the FCA in this complex matter and we will provide further updates when the FCA reaches its final decision in due course,' chief executive Mike Faulkner said.

In the two months ending 31 May, fee-earning assets under management rose 2% to £33.8bn, while over the 11 months through May they rose 9% to £33.8bn.

Net inflows in the 11 months through May were £2.0bn, equivalent to 6% of opening assets under management.

'The business continues to perform well,' Faulkner said.

'Flows and our forward pipeline - in particular in equities, derivatives and new investment strategy development - remain strong.'

'Fiduciary management and advisory growth has been slower, however this is in line with the expectations and guidance that we have historically provided to the market, given the stage of the cycle and the strong equity market rallies that we have seen over the last 12 months.'

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