Mortgage network Prestbury has confirmed a winding up petition against the firm has been granted.
In a statement to the London Stock Exchange, the company says it had encountered difficulties transferring a number of its appointed representatives (ARs) to Personal Touch Financial Services - as agreed back in September.
It says the ARs have either decided to transfer to a different company or have not reached acceptable commercial terms with PTFS.
In addition, life companies have made claims for clawback commissions in respect of policies written by ARs which have now been cancelled.
This has led to those life firms withholding payment of commissions which were expected to be received by Prestbury, while the firm is also owed approximately £360,000 by ARs who have been unable in the present climate to pay the network.
An official receiver has now been appointed to oversee proceedings, while its advisers, John East & Partners, has resigned with immediate effect.
Trading in the company's shares have now been suspended pending the appointment of a replacement nominated adviser. If no appointment is made by 18 January, trading of shares in the company on AIM will be cancelled.IFAonline
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