It also announced that recently acquired IFA network Financial Limited has been replaced with a newly established network. 236 financial advisers from Financial Limited have now transferred to Tavistock Financial network.
Tavistock revealed that the historic drop in the number of members within Financial’s network prior to its acquisition caused the business to be trading at a loss at the time of its acquisition in January.
In July 2014, the FCA used its suspension power for the first time to ban Financial Ltd from recruiting new Appointed Representatives and individual advisers for a period of four and a half months.
In a statement, Tavistock said:
"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."
Together with the Tavistock Partners network, Duchy IFAs and new joiners, Tavistock investments now has over 270 advisers covering most regions of the UK, looking after 65,000 clients with over £3 billion of assets under advice.
Brian Raven, Tavistock Investment’s Chief Executive, commented:
“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.
"We aim to deliver organic growth as well as continue to pursue selective acquisitions that meet our strategic criteria.”
