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Tavistock eyes advice arm sale for £1.5m

Legacy liabilities are said to be a stumbling block for any potential deal

Raven-Brian-Tavistock-2014.jpg
Tavistock chief executive Brian Raven

Tavistock is looking to sell its advice business for around £1.5m, Money Marketing has learned.

An information memorandum is understood to have been circulated to set out the parameters of the deal.

Tavistock is said to be looking for 100 per cent of the purchase price upfront. The document claims Tavistock has 120 firms and 150 advisers on its books, and the acquirer will take control of back- and head-office staff, according to a source close to the deal.

In 2015 Tavistock acquired network Financial Limited, which a year earlier had been banned by the FCA from recruiting appointed representatives because of “systemic weakness” in its controls. The FCA and the FSA also each levied fines against Financial Limited founder Charlie Palmer.

Tavistock said it would close the network, move advisers to the new Tavistock Financial network – the part of the business now up for sale – but also underwrite the liabilities from Financial Limited.

A source close to the deal said one potential suitor had been “really concerned” over legacy liabilities.

Tavistock declined to comment.

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