Cornerstone's assets include various books of clients and FCA-regulated Sutcliffe Solloway Financial Planning Limited of Grimsby.
These business interests have historically been managed on Cornerstone's behalf by the company's subsidiary, Tavistock Partners Limited.
As a part of the deal, Tavistock Partners had provided funding via an inter-company account to enable Cornerstone to satisfy deferred payments due to the former owners of its assets.
The vendors of Cornerstone are the three original owners of Tavistock Partners, Stephen Moseley, Kevin Mee and Paul Millott. The proposed transaction will bring these client relationships and the regulated entity into the ownership of the Tavistock group.
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It had originally been intended that this transaction take place at the same time as the acquisition of County Life and Pensions, the business that was subsequently renamed Tavistock Partners, but this was prevented at the time by the existence of a clause in one of Cornerstone's asset purchase agreements which has now been removed, allowing the transaction to proceed.
At the end of February 2015 Cornerstone's unaudited management accounts indicated that it had gross assets of £1.25million, including cash balances of £122k and total liabilities of £1.45million, which sum included £639k owed to companies within the group. In the nine month period to the end of February 2015, Cornerstone reported a loss of £56k on nil turnover.