Openwork lost over 400 advisers in 2010 and made pre-tax losses of £8.5m.
Openwork’s 2010 accounts, published today, show the number of Openwork advisers fell 17 per cent from 2,485 in 2009 to 2,060 in 2010, while losses increased from £5.6m to £8.5m.
The firm paid out around £500,000 for complaints redress and made a provision of £2.2m during the year.
The network has blamed the drop in adviser numbers partly on the establishment of Caerus Wealth Group by former Openwork chief executive Keith Carby as well as a reduction in the number of advisers in the industry.
Carby was Openwork chief executive until July 2009 when he left due to tensions within senior management regarding the future management and ownership of the business. He launched Caerus Wealth Group in summer last year.
Openwork chief executive Mary-Anne McIntyre (pictured) says: “The decline was a reflection of both a general contraction in the number of advisers in the market and targeted competitor activity following the establishment of a rival network by ex-Openwork staff.”
Openwork’s accounts say the firm expects to continue to make a loss in 2011.
It adds Openwork’s investment platform, powered by Zurich, will be available to network advisers in early 2012.
Last month, Money Marketing revealed that Openwork has spent £15m on RDR projects over the last two years and that it is turning its national IFA arm 2Plan into a network, as well as looking to launch a national proposition in 2012.