deVere UK reports £1.2m loss amid "significant" FCA investigation costs

The firm's pre-tax losses increased from a loss of £864,700 in 2016, and deVere admitted that the review being carried out "will involve funding that the company is unable to meet from its forecast operating cashflows".

It revealed that the business is currently reliant on financial support from its parent company and also raised concerns that "loss of key advisory staff could lead to a loss of income as clients withdraw their custom from the company's service".

deVere says the FCA investigation relates to "a discrete area of work the business was undertaking and no longer carries out".

In February 2017, the regulator launched a Section 166 review into the firm’s pension transfer practices which involves investigating aspects of a regulated firm's activities if the FCA is "concerned or wants further analysis".

As part of the agreement, deVere stopped providing reports to third party companies which assist them in transferring customers' DB pensions.

As a result of stopping its pension report writing service, the firm's turnover reduced from £3.08m in 2016 to £2.15m in 2017.