Tenet expects to formally confirm by Monday at the latest its completion of a deal to transfer financial advisers from Berkeley Berry Birch to its networks.
Officials at Tenet say they are in the final stages of completing a deal which will allow BBB advisers to continue operating as normal and prevent a freeze on pipeline business, now BBB has declared it is unable to raise the funds needed to keep the business within the FSA’s capital adequacy requirements.
The firm is said to be putting processes in place so intermediaries from the remaining BBB divisions – all but BBN IB which has already been sold to Smart and Cook for £4.2m - and can continue to produce their revenue and carry on advising clients as normal, and Tenet will take on their risk and professional indemnity requirements in order to protect advisers.
A series of meetings will be held with BBB intermediaries next week to reassure appointed representatives of their positions.
Berkeley Berry Birch had until Monday 27th February to close the deficit on its BIA and Weston divisions’ capital adequacy requirements under FSA rules, but failed to raise the necessary funds so a statement issued on Tuesday 28th February said BBB would no longer be regulated to conduct financial services business.
The Financial Services Authority will also issue its final notices on the firm by 9am on Monday 6th March, and it is anticipated the FSA announcement will not be made until as late as possible, to allow Tenet to close the deal.
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