London-based adviser firm Inter-Alliance has made a formal announcement saying it is in talks with rival firm Millfield to merge the two companies.
The two firms had been in talks previously to merge, but the discussions failed due to technical issues.
Stuart Wilson, mortgage development director at Inter-Alliance, says if the firms merged it would mean bigger distribution where its number of members would exceed 2,000.
He says: “This is a sign of the times where firms will be making more acquisitions. For smaller firms it will be difficult to survive in the regulatory environment without merging with another company.”
Wilson says results of the talks are expected to be announced in the next few weeks.