News emerged in July last year that Financial Ltd had been banned from recruiting appointed representatives after it failed to ensure adequate controls were in place to minimise the risk of mis-selling.
In January this year, Tavistock announced it was planning to buy Standard Financial Group, the parent company of Financial Ltd. Shareholders unanimously approved the deal the following month.
Tavistock’s financial results, which cover a 15-month period ending in March this year, read: “It is anticipated that in due course Financial Ltd will cease to provide network services and that the entity will then be closed down.
“The establishment of the new network will enable the company to achieve significant operational cost savings, most notably through a reduction in the level of the professional indemnity insurance premium and other regulatory fees.”
Significant progress
The majority of the advisers from Financial Ltd have already moved over to the new network Tavistock Financial.
Other members are expected to be invited to become appointed representatives of the group’s other advisory business, Tavistock Partners.
The results indicate that Tavistock made a post-tax loss of £864,000 ($1.4m, €1.2m), compared to a loss of £516,000 in the previous year.
Tavistock chief executive Brian Raven said: “We have made significant progress this year towards our ambition to become a large and profitable financial services group, by establishing a strong, national financial advisory and investment management business.
“Over the coming year, our key focus will be on full integration of the firms we have acquired and ensuring the right infrastructure is in place to grow the company profitably and rapidly.”
