The FSA has withdrawn its petition for the winding up of Wills & Co after creditors approved its proposal for a company voluntary arrangement (CVA).
A CVA enables a financially troubled company to pay creditors over a more gradual period of time and continue trading both during and after the arrangement.
In July, the FSA confirmed the stockbroker was in default after the FSCS found it to be unable to pay claims-a decision which allowed the start of compensation claims against the firm.
Earlier this year, the FSA stopped the London-based stockbroker from giving investment advice due to poor sales practices, including poor risk warnings and misleading information to its high-risk penny share customers.
The FSA said it could no longer provide share buying recommendations to retail customers.
What made financial headlines over the weekend?
To promote 'long-term investment'
Switching 'hard and expensive'
Smaller funds still packing a punch