Clarkson Hill is unable to undertake any regulated activities after the FSA removed its permissions.
The Board of Clarkson Hill Group has received an approach regarding a possible offer for the Cambridge-based business.
Clarkson Hill says it is "still in discussions" with the FSA about its capital requirements as the firm announced a significant recovery in profits after last years' pre-tax loss of nearly £180,000.
Clarkson Hill directors Ron Pritchard and Mike Robinson have loaned the business £588,000 to help it meet its regulatory capital requirements.
IFA Clarkson Hill, which resumed trading on AIM today, warns unless it receives an injection of capital from an outside party it will cease operations.
Share trading in Clarkson Hill has been temporarily suspended after the national IFA failed to submit its annual accounts.
IFA group Clarkson Hill has seen its pre-tax profit fall 20% to £20,031 over the year to 31 July.
IFA Clarkson Hill today reports a near 45% drop in pre-tax profit in its half-yearly report to January 31 2008.
Advisers at Clarkson Hill Group will have the chance to gain more qualifications as part of a company-wide initiative.
National IFA firm Clarkson Hill posted its first ever before tax profit in the year to 31 July 2007.