Centrepoint Alliance has added $4.5 million to the provision for claims against advisers at its Professional Investment Services (PIS) business.

It has moved the sum allowed for claims last financial year to $10.5 million and the total provision to $20.8 million, according to a new takeover booklet concerning Centrepoint’s bid for Associated Advisory Practices (AAP).

“The Centrepoint board is reviewing and considering its options for reducing the risk of future increases in the PIS claims provision,” it says.

“[The board] is investigating the potential to obtain stop-loss insurance to cover a proportion of the potential claims liability.”

Centrepoint has updated its corporate information as part of a bid to acquire the 50% of two AAP companies it does not already own.

It does not expect AAP shareholders to oppose the deal, which values their shares at 47-52 cents – down on the original valuation of 52-58 cents. AAP independent directors Jason Cutrupi, Craig Hargraves and Barry Smith have recommended the takeover, and an independent expert’s report also backs the move.

A shareholder meeting to discuss the takeover will be held tomorrow, with Federal Court approval to be sought on Friday.

Subject to approval, the takeover will be implemented on October 14.