Tavistock Investments is to close recently acquired network Financial Ltd and launch a new network in its place.
In July, Mortgage Strategy’s sister title, Money Marketing, revealed Tavistock was considering closing Financial. The stricken network had been banned from recruiting appointed representatives in July 2014.
Tavistock announced the acquisition of Standard Financial Group, the parent company of Financial Ltd, in January. It paid £500,000 for the business initially, plus a deferred consideration of £2,000 for each adviser who stayed with the group until 31 March 2016.
In its final results, published last week, Tavistock says 236 advisers have already been moved from Financial to the new Tavistock Financial network.
It adds: “Some members of Financial’s network may in due course be invited to become appointed representatives of the group’s other advisory business, Tavistock Partners, where a retirement guarantee is made available to members.
“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.”
Tavistock Partners was created in May 2014 when the firm purchased Derbyshire advice firm County Life and Pensions Ltd.
In May 2015 the firm also acquired Cornwall-based Duchy Independent Financial Advisers.
In all, Tavistock has over 270 advisers, around 65,000 clients and over £3bn of assets under advice.
The results show the firm made an £864,000 post-tax loss, compared to a £516,000 loss last year.