Tribeca Learning has sold its compliance business to boutique dealer support and services company, Paragem Partners, for $125,000 effective from June 30, 2005.
Tribeca chief financial officer Warren Jacobson said Paragem would retain the entire staff of 12 currently working in the compliance business and would also take on all accrued entitlements of the transferring employees.
Jacobson said all clients of the compliance business would also transfer to Paragem, which currently provides its clients with dealer license, technical, administrative and practice development services.
“Paragem will continue the business as is. Their broad intention is business as usual which is why they’ve taken all the staff,” he said.
In mid-May, the education company announced its plan to abandon the compliance section, which conducted adviser audits and compliance consulting, following a decline revenues in that area and a strategic decision to focus on core education and professional development businesses.
At that time, the department employed 15 staff, but Jacobson said there had been resignations in the interim. There have been no redundancies as a result of the sale.
Tribeca claims the sale also negates $500,000 worth of costs it had expected to incur if the compliance business had been shut down entirely.
