Tai Fook Securities Group's plan to expand its wealth management services has been delayed due to regulatory issues, managing director Peter Wong Shiu-hoi said. The group last year unveiled a campaign to relaunch its wealth management business, with plans to hire Elsa Pau, one of the industry's most colourful figures, to spearhead the division. 'We will continue to develop wealth management business, but we will adjust our expectation of its contribution to the group's overall profit,' Mr Wong said. Tai Fook had underestimated the time required to hire and train wealth management personnel, he said, noting the business was governed by stricter regulatory guidelines due to the type of products it marketed. 'The Securities and Futures Commission has very strict guidelines on structured products, for example,' Mr Wong said. Tai Fook's stock brokerage business continued to thrive due to a strong stock market last year. Income from the division reached $160.6 million, accounting for more than 45 per cent of group turnover and 60 per cent of net profit. Although Mr Wong expects growth in brokerage income to stabilise this year, he remains optimistic, noting the alliance with several Japanese brokerages to jointly provide Hong Kong stock trading services to Japanese investors. The group reported net profit of $70.28 million for last year, compared with $41.58 million for the nine months to December 2003. It changed its accounting year-end to December from March in 2003. Sun Hung Kai & Co yesterday posted a 59 per cent surge in net profit to $384.79 million for last year on a 20 per cent rise in turnover to $807.01 million.