Lifetime and Camelot joined forces last year, with a combined team of 165 people across 16 offices around the country, including 100 advisers. At the time, it said adviser numbers were expected to grow significantly over the next two years.

But in the year and a half since, several advisers, including high-profile names, have departed the new organisation.

Peter Cave, managing director, acknowledged the reduction.

He said the strategy adopted after the merger was to pursue an employee model, to best position the group for the new licensing regime.

Lifetime had had an independent-contractor model before that.

“We also implemented our ‘advice for life’ client engagement philosophy during the same period.

“The objective was to position the adviser team for the future and invite those that wanted to come on the journey, to adopt the changes.”

But he said the net result had been the loss of some advisers.

“We have experienced just over 20% reduction in our adviser team over 12 months, made up of those we didn’t offer contracts to; those that left with their clients to set up their own businesses; and those that either retired or left the industry.”

He said dividends were still being paid to shareholders in the business, including its advisers, despite money being reinvested into it. It was still very profitable, he said.

Paul Stolworthy is one adviser who has left. He said he moved on at the beginning of the year and is now part of Apex Advice.

He said the shift to employment contracts had been behind his decision to move. “That had a lot to do with it.”