I already made it twice. i mean, when you finish the game od mercenary level and start new on veteran you will keep your items, spells, skills and party members with their items etc.
You even keep your chants and map exploration. It's kind of weird how much you keep.
SWC
Sir Edmund:"Should you obey the lord who asks you to put a village of innocents to the torch? Is that chivalrous? Is it noble?" Me:"It's a great way to get promoted, I know that much."