Towergate sells Towergate Financial for £8.6m

Towergate Insurance has sold advice arm Towergate Financial to Palatine Private Equity in a deal worth £8.6 million.

The unit had been under investigation by the Financial Conduct Authority for its sale of unregulated collective investment schemes and enhanced transfer value products.

Towergate said: “Given the ongoing investigation in relation to past advice provided by the Towergate Financial business on enhanced transfer values and unregulated collective investment schemes it was determined that the group should seek to de-risk itself from any future potential issues that might arise in this sector.

“Under the terms of the agreement all risk on all business written post completion of the sale will be removed.”