Merchant House has said the "complex" process of re-authorising advisers following its acquisition of IFA group Clarkson Hill in 2010 was a big contributor to group losses of £5.6m last year.
Merchant House, which acquired Clarkson Hill in December 2010 to come under its Merchant House Financial Services (MHFS) proposition, incurred a loss for full-year 2011 of £5,613,000. MHFS alone made a loss of £2.4m. It said this was after a number of significant one-off charges and costs. Among these, it said, were the costs related to the complex process of arranging for the re-authorisation of advisers joining from Clarkson Hill. This took so long, it said, the average gross income for MHFS in the first three months of last year was just £20,000, while, in June, after all advise...
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