The FSA has placed secret conditions on the merger of Inter-Alliance and Millfield.
In a deal with the FSA, the firms had to agree to a series of restrictions – which the regulator refuses to make public – before a merger was approved.
Both firms were issued with a warning notice and a decision notice on September 29 relating to the proposed merger. The next day, they were told a set of restrictions had been applied.
The regulator has taken the same approach over Millfield's control of Sage Financial Services, which is part of the Inter-Alliance Group.
The merger was formally approved on October 1, when the Millfield offer for Inter-Alliance became wholly unconditional. The two groups have 1,850 advisers and plan to grow the enlarged group to over 2,000. Further expansion is planned once multi-ties are introduced.
Cost savings of £5m or 10 per cent over the next year are planned and the group predicts turnover of £150m in a year.
The FSA statement says: “The FSA has decided to impose conditions on the approval of a change of control in relation to Inter-Alliance Group Plc, Inter-Alliance Limited and Sage Financial Services.”
Spokeswoman Ruth Excell says: “Sometimes when we issue a final notice, it is necessary to withhold information.”