Openwork records £8.5m loss
The network paid out just under £500,000 during 2010 for complaints redress according to the accounts.
It has also seen its number of advisers fall from 2,485 in 2009 to 2,060 in 2010 however the firm claims the current number of advisers has recovered to around 2,300 this year.
Openwork attributed the losses to both a contraction in the number of advisers in the market and the loss of advisers to rival network Caerus Wealth Group, set up by ex-Openwork chief executive Keith Carby.
Philip Martin, proposition & marketing director, said: “The adviser numbers detailed in our filed accounts show the position at 31 December last year. In the 10 months since, our adviser base has remained solid and in fact, through the acquisition of 2plan and other recruitment, now stands at just under 2,300.
“Turnover in any advisory business is natural of course but we are encouraged that 2011 so far has seen the lowest number of leaving advisers since the business was formed.
“On the specific point regarding paid redress, our accounts actually show we paid just under £500,000 during the period; the remainder being prudent provision for any future claims.”
Martin said the stability of Openwork’s adviser group was a testament to the attractiveness of the Openwork proposition across mortgage and protection and investment lines.
“Any quality advisory business operating any model – be it single tie, restricted or whole-of-market – is welcome to speak to us to explore how it might benefit from our offering,” Martin added.