The private client investment manager saw pre-tax profit drop to £21.9m in the year to 30 September from £30m the previous year, despite seeing total income rise 10% to £264m compared to £240m last year.
A large chunk of the profit reduction came from a £6m Financial Services Compensation Scheme levy, up from the £0.6m Brewin Dolphin paid last year.
Commenting on the charge, Jamie Mattheson executive chairman of Brewin Dolphin, said: "This related largely to the failure of Keydata. While clearly a charge of this nature is not something any company would relish, or indeed anticipate, it is important that investors are provided with appropriate redress when the industry has failed them.
"It is important to note that this is only part of the on-going and increasing cost of regulation. Much work is being done in the UK and Europe regarding regulatory reform and Brewin Dolphin is fully engaged in the process."
Funds under management were up 3.4% at the end of the year at £24bn, with £8.4bn in advisory funds and £15.6bn in discretionary funds.
Assets in discretionary funds were up 11.4% in the period, while those in advisory funds fell 8.7%.
In August the firm acquired Tilman Asset Management in an expansion of its operations into the Republic of Ireland for the first time. This brought a €0.9bn of funds into the business.
Brewin is now targeting Bristol, a city it currently has no presence in, with the imminent opening of a new office, and is adding to its teams in Glasgow, Leeds and London.
