Tavistock Investments is considering winding down adviser network Financial Ltd as it looks to restructure the business, Money Marketing understands.
Tavistock announced its 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 remains with the group until 31 March 2016.
Money Marketing understands Tavistock is considering a range of options to restructure Financial Ltd, and has invited some of the network’s members to move across to its adviser business.
Tavistock has 300 advisers and offers an exit strategy for principals looking to retire.
One option under consideration is to wind down Financial Ltd and move all of its members to Tavistock.
Money Marketing understands Tavistock would still be responsible for Financial Ltd’s liabilities in this scenario.
Financial Ltd was banned from recruiting new ARs and individual advisers for four and a half months in July last year after the FCA identified “systemic weaknesses” in the network’s systems and controls.
The FCA required the network to carry out past business reviews into pension switching and Ucis advice.
A source close to the business says: “Financial Ltd is in need of a radical overhaul and there are a range of options available.
“Regardless of what happens there is a commitment to continue with the past business reviews and keep hold of the liabilities.”
Financial Ltd managing director Brian Galvin says the network is changing its proposition, but refused to comment further.
Tavistock chief executive Brian Raven says: “Tavistock Investments is integrating Financial Ltd’s staff and advisers into the group on a planned basis agreed with the FCA before the acquisition completed.
“Each phase of the process is being checked with the FCA to ensure that all required permissions and approvals are obtained.”