Advisory group Paradigm Partners has shelved plans to run its investment joint venture with Henderson.
Tatton Investment Management, first announced in October, was originally meant to sit outside of the group.
Paradigm has now decided such an arrangement is "unnecessary", meaning Tatton, run by former Octopus Investments CIO Lothar Mentel, will come solely under the group's control.
Partner Antony Morrow said: "During the process it became apparent to the team that the need to create a joint venture to achieve what we wanted for the business and our partner firms was unnecessary and as a result we took the decision to discount that option."
Henderson will be retained to manage segregated mandates across Paradigm's Tatton range, alongside Octopus.
In November, the FSA wrote to wrote to life companies expressing its concerns over conflicts of interest, including the issue of joint ventures.
The regulator said the vehicles could allow large payments between fund managers and advisory firms, thereby circumventing the commission ban.
It is understood Paradigm's decision is unrelated to the FSA's concerns.
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