Bluefin blames redress and claims for losses

Axa-owned IFA Bluefin Personal Consulting announced it made a pre-tax loss of £960,000 for 2011, compared to a £270,000 profit in 2010.

The firm’s accounts for the year ending December 31, published on Friday (13 June) showed Bluefin has made a redress provision of £600,000 for possible unsuitable advice as well as paying an inter-company creditor £4.9m.

During 2011, Axa made contributions of £2.8m to Bluefin Personal Consulting. The firm changed its name from Bluefin Wealth Management in December 2011.

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The firm is also subject to legal disputes for which it says it cannot yet make provisions. In June, Bluefin confirmed it has launched legal action against two former advisers to claim back disturbance allowances of £264,000.

A statement in the accounts said: “The company is subject to claims and litigation in the ordinary course of business resulting principally from alleged errors and omissions. Although all claims are defended, appropriate provision is made for potential liabilities including expenses.

“There remains a contingent liability for all other items that arise in respect of potential claims and litigation notified to the company at the date of these accounts. Claims may arise several years after the original events which are the subject of dispute.”

Axa put Bluefin up for sale in November. In April, Capita announced it had agreed to acquire Bluefin’s corporate advice business, Bluefin Corporate Consulting, and merge it with Capita Hartshead.