Sofa chairman and Informed Choice managing director Nick Bamford was advised to wind up his firm and transfer out its assets but decided against it for moral reasons.
Bamford recently received professional advice about the future of Informed Choice, which has seen 14-fold increases in professional indemnity insurance premiums. Part of the advice was that he should wind up the business and start again.
But Bamford says he did not feel comfortable following this advice and leaving his liabilities for the rest of the industry to deal with.
He says a phoenix makes sense from a business point of view but from a moral perspective he feels it is wrong. But he expects more firms to consider the option in future.
Bamford says: “I do not see how I can be critical of a recent fashion for advisers to wind up their businesses and start again as, from a business perspective, I can see why they would do this. I chose not to do it for moral reasons but I can see why people would do it.”