Aegon-owned advice firm Origen Financial Services Limited has reported a £2.9m loss for 2012 at the same time as it prepares to defend itself in a legal battle with the Financial Services Compensation Scheme.
Company accounts show a loss before tax of £2.93m as a result of reduced income and a review of the suitability of advice given to clients.
Income alone fell to £16.2m in 2012, down from £17.6m in 2011. The overall pre-tax loss was reduced in comparison to the £3.5m loss of the previous year.
In 2011 the Origen board began a review of its systems and controls and the suitability of regulated advice given to clients, aiming to identify past failings and ensure adherance to best practise. Origen put a further £1.9m towards the review last year on top of money originally set aside in 2011.
Earlier this year (15 February), Origen parent company Aegon reported combined losses of £2m across both IFA companies Origen and Positive Solutions.
Meanwhile, the company is bracing itself for potential liability in a case brought by the FSCS regarding Keydata Investment Services Limited after the scheme paid out to Origen customers advised on Keydata products.
Origen said in a statement: “The FSCS has commenced legal action to attempt to recover part of these monies from Origen, which we do not consider to be a valid claim.
“Any claim that may result from this will be vigorously defended by the company.”
However, the company did not speculate on how much these claims may cost.
