Tavistock gets regulatory approval for new network
Tavistock Investments has confirmed the creation of a new network, with “the majority” Financial Limited members being transferred across, following regulatory consent being granted.
In February, Tavistock’s shareholders voted unanimously in favour of its acquisition of Standard Financial Group, parent company of the embattled Financial Limited network.
Last month, Tavistock’s chief executive Brian Raven told FTAdviser that Tavistock Financial would be the new home of the “majority” of Financial Ltd network members that have chosen to move across.
The firm’s latest set of results explained that 236 advisers have already been moved from Financial Ltd to the new network, while some members may in due course be invited to become appointed representatives of the group’s other advisory business, Tavistock Partners, with retirement guarantee made available to members.
“It is anticipated that in due course Financial Ltd will cease to provide network services and that the entity will then be closed down,” read the document.
“The establishment of the new network will enable the company to achieve significant operational cost savings, most notably through a reduction in the level of the professional indemnity insurance premium and other regulatory fees.”
The results also showed that Tavistock Investments made total revenue of £5m for the 15 months ended March 2015, in comparison with £176,000 at the end of 2013, a turnaround which the company said was a result of discontinuing its loss-making software business.
However, it also posted post-tax loss of £864,000 for the same period, up from a £516,000 loss for the full year in 2013, according to its latest results.
Tavistock’s loss before tax was £364,000 for the same year, compared with £309,000 for 2013.
The figures explained that the period under review was “one of construction” and include 15 months of overhead costs for the group’s holding company, Tavistock Investments, 10 months of trading for each of Tavistock Partners and Tavistock Wealth, and six weeks of trading for Standard Financial Group, as well as certain associated transaction and fundraising costs.
Mr Raven commented: “We have made significant progress this year towards our ambition to become a large and profitable financial services group, by establishing a strong, national financial advisory and investment management business.
“Over the coming year, our key focus will be on full integration of the firms we have acquired and ensuring the right infrastructure is in place to grow the company profitably and rapidly.
He added: “We aim to deliver organic growth as well as continue to pursue selective acquisitions that meet our strategic criteria.”
Mr Raven previously stated that his immediate order of business was integrating recently-acquired businesses, rolling out automaton of advisory systems and then looking at further acquisitions.
The surprise deal for Standard Financial Group was followed in April by a deal for the entire issued share capital of adviser firm parent Cornerstone Asset Holdings and a transaction in May for Duchy Independent Financial Advisers.
ruth.gillbe@ft.com, peter.walker@ft.com
