Jarvis Securities PLC on Thursday warned it is trading below market expectations amid a costlier-than-expected probe on one of its divisions.

Jarvis Securities shares fell 15% to 125.80 pence each on Thursday afternoon in London.

The stockbroking and administration services provider said a ‘skilled person’ is reviewing the system and controls of its Jarvis Investment Management unit. The company has suffered amid ‘associated restrictions on Model B clients’. This has led to the loss of some customers and revenue in the Model B division.

‘In addition the costs associated with the skilled person review are higher than anticipated. These factors, combined with reduced trading volumes caused by market conditions, mean that the company is now trading below current market expectations,’ Jarvis warned.

Jarvis declared a third quarter dividend of 2.25 pence per share, down 25% from 3p a year prior.

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