Skipton Building Society-owned IFA firm Pearson Jones has set aside £2.2m for possible redress over pension sales relating to a firm it merged with in 2010.
The firm’s accounts reveal Pearson Jones is conducting a review into the pension selling of Parnell Fisher, which merged with Pearson in October 2010.
The provision means the firm reported a pre-tax loss of £768,000 for 2011, compared to a £1m profit in 2010.
The firm says: “Pearson Jones is currently undertaking a review of the pensions selling activities of Parnell Fisher Child & Co in the period before its transfer into Pearson Jones in October 2010.
“Initial enquiries have identified documentation issues in a number of cases and this may result in some amounts being paid by Pearson Jones. The provision represents management’s best estimate of the net redress expenditure to be incurred in respect of the review.”