Towergate has appointed chief risk officer Sarah Dalgarno to head up a new unit that will tackle the broking group’s old liabilities.
Dalgarno will continue to be involved in Towergate’s group risk function until a replacement chief risk officer appointed.
The new division, called the Legacy Resolution Unit (LRU), will handle the simplification of Towergate’s legal entity structure.
Towergate’s old liabilities include the redress programmes for financial advice former unit Towergate Financial gave about unregulated collective investment schemes (UCIS) and enhanced transfer values.
Towergate sold Towergate Financial to private equity house Palatine in March 2015 but retained the UCIS and ETV liabilities.
UCIS are a type of investment, while ETVs are a method of transferring pensions.
Towergate chief executive David Ross said: “We have a clear understanding of the immediate challenges we face and we know that tackling our legacy issues is key to the future success of the business.
“This project, separating the distractions of the past from the priorities of the present, is critical to the implementation of our turnaround.
“I am delighted that Sarah Dalgarno has agreed to step in and lead it until its conclusion. Her specific responsibilities at AJG, where she led a project rationalising legal entities and non-core assets, together with her wide ranging experience in risk and governance, make her the ideal choice for this important priority.”
Towergate non-executive chairman John Tiner said: “The board is fully supportive of this initiative to bring a dedicated focus to the resolution of legacy work streams and clarity to our future financial reporting between the performance of the strategic businesses we are investing in and the costs of concluding our legacy issues.”
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