Aegon-owned network Origen Financial Services has posted a loss before tax of £2.9m after a £1.9m provision for a review into advice suitability impacted on the businesses bottom line.
The Origen board began a review of the firm's systems and controls and the suitability of regulated advice given to clients in 2011, with the aim of "identifying any past failings and embedding best practice".
Origen said it expects the work to be completed this year, and, along with the £1.9m recognised in the accounts, it has made a £320,000 provision against this review for 2012.
The 2012 loss of £2.9m is an improvement on the company's results in 2011, when it posted a £3.5m loss.
However income for the year fell to £16.2m, down 8% from £17.6m in 2011, largely as a result of the absence of larger corporate advice projects, the firm said.
Average revenue per adviser increased to £227,000 last year, up from £211,000 for the previous year.
Excluding the cost of the suitability review and redundancy costs of £181,000 - down from £634,000 in 2011 - administrative expenses fell 25% from £2.6m to £1.9m.
During last year, parent company Aegon gave Origen a cash injection of £4m. Origen is forecasting a loss for the year ended 31 December 2013.
Has been cold-calling consumers
New shares admitted to London Stock Exchange
Slow and steady growth
Missed funding target by £240,000