Axa-owned IFA Bluefin Personal Consulting has reported a £960,000 pre-tax loss for 2011, compared to a £270,000 profit in 2010.
The firm’s accounts for the year ending December 31, 2011 also reveal Bluefin has made a redress provision of £600,000 for possible unsuitable advice as well as paying an inter-company creditor £4.9m.
Figures show a large increase in administration expenses from £726,000 in 2010 to £12.6m in 2011, which the firm says largely relates to the integration of IFA firms Cavendish Financial Management, Morgan James and Watterson Wealth Management.
During 2011, Axa made contributions of £2.8m to Bluefin Personal Consulting. The firm changed its name from Bluefin Wealth Management in December 2011.
The firm is also subject to legal disputes for which it says it cannot yet make provisions for.
A statement in the accounts says: “The company is subject to claims and litigation in the ordinary course of business resulting principally from alleged errors and omissions. Although all claims are defended, appropriate provision is made for potential liabilities including expenses.
“There remains a contingent liability for all other items that arise in respect of potential claims and litigation notified to the company at the date of these accounts. Claims may arise several years after the original events which are the subject of dispute.”
In April, Axa appointed Graham Harvey as managing director of Bluefin Personal Consulting, following the sale of its corporate arm. Harvey was previously Friends Life managing director, UK individual products.