Sceptics may have questioned warnings that the soaring cost of Professional Indemnity Insurance would put some advisory firms out of business. They may have to eat their words.

Wealth manager Harwood has placed a subsidiary, appointed rep adviser firm Network Direct, into voluntary administration due to “weak investment markets” and rising Professional Indemnity insurance costs.

Financial Planner and wealth manager Harwood Wealth Management Group plans to push ahead with further acquisitions and organic growth after announcing revenue up 123% in its latest results.

A Financial Planning business has bought a network of advisers for about £4m.