The directors of Tavistock Investments have said they will close down its recently acquired network Financial Ltd and replace it with a new incarnation.
The company made the announcement in its results for the 15 months ended 31 March 2015, published on Tuesday.
The statement said: “The company has recently secured regulatory consent for one of its other subsidiary companies, Tavistock Financial Ltd, to operate an IFA network business, and with the sanction of the regulator, the company has transferred the majority of the members of Financial’s network to the new Tavistock Financial network.
“It is anticipated that in due course Financial Ltd will cease to provide network services and that the entity will then be closed down.”
According to the results, the establishment of the new network will enable Tavistock Investments to achieve significant operational cost savings, most notably “through a reduction in the level of the professional indemnity insurance premium and other regulatory fees”.
Background
Tavistock bought Standard Financial, the parent company of Financial Ltd, in February 2015.
In July, Financial Ltd was handed a trading ban by the regulator for failures on control of appointed representatives. It did not have to pay fines – totalling more than £13m – due to insufficient funds.
