Positive Solutions saw 360 advisers leave last year whilst cutting its pre-tax losses to £1.6m.
The firm’s accounts for 2010 show an improvement on 2009 figures, when it made a loss of £6.9m, but adviser numbers fell 22 per cent, from 1614 to 1254. The firm saw a 2 per cent increase in turnover from £85m to £86.8m.
The results show pre-tax losses of £2.1m, although this includes provision for £508,000 not paid in share options because the firm failed to reach a valuation of £200m.
The results show the highest paid PosSol director received £501,000, compared to £351,000 the previous year.
PosSol chief executive Jim Reeve says the large drop in numbers is due to advisers choosing to become directly authorised.
Reeve says: “The further strengthening of our governance framework and changes brought about by the RDR resulted in some partners perceiving they should move to a directly authorised model in order to save costs and operate in a less challenging compliance environment. We strongly believe that both of these assumptions will prove to be flawed.”
PosSol attributed the reduction in losses to higher turnover generated by fewer advisers and the completion of a review in past business in 2009 with no further associated costs in 2010.