Financial adviser Origen, part of Edinburgh-based Aegon UK, has reported a £3.5 million pre-tax loss for 2011 after conducting an internal review of its systems and controls.
The loss comes as Aegon battles to turn around its distribution division, which also includes the Positive Solutions network.
Aegon has said Positive Solutions and Origen are not for sale, despite the two businesses posting combined losses of more than £25m since 2009.
Origen says "review costs" of £787,000 have been recognised in its 2011 accounts.
Mike Kirsch, Origen's managing director, said the review covered systems, controls, and "the suitability of regulated advice given to clients, with the aim of identifying any past failings and embedding best practice within the company".
He says that in addition to the £787,000 recognised this year, "further costs may be incurred as the project progresses" and the directors adjust the scope of the work in the light of their assessment of the results of the review.
Aegon UK has only recently completed a customer redress programme costing £100m after it admitted to multiple failings in its pensions administration, which resulted in a £2.8m fine from the Financial Services Authority.
Aegon's chief executive Adrian Grace, who was installed 18 months ago, hinted early in his reign that the distribution losses would not be allowed to continue.
In May the group reported that Positive Solutions and Origen had posted a combined £1m loss for the first three months of the year, compared with £3m for the same period in 2011.
Mr Grace has said the businesses are important to Aegon as the market moves to a new fee-only advice model.
Patrick Connolly, a financial planner at the advice network AWD Chase de Vere, commented: "National IFAs and networks are going through huge transformations and many appear to be struggling to generate profits during this process."
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