Mortgage Times to enter administration
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Employees at Mortgage Times have been told that the network is about to be placed into administration.
A staff member, who did not wish to be named, told Money Marketing that staff were called into a meeting today and told that the mortgage and IFA network is about to be placed into administration.
In an email sent to appointed representatives and seen by Money Marketing, the group’s directors say the company has ceased trading and therefore advisers are no longer authorised to conduct regulated activities.
The email says: “As appointed representatives of The Mortgage Times Group Limited you are no longer permitted to conduct regulated activities under our FSA number 303007 as from today’s date.”
It adds: “We have been vigorously attempting to secure investment into the business from strategic business partners to allow us to continue to trade solvently in to 2010.
“We are extremely saddened that at the 11th hour a potential major investor has made the decision not to proceed and we have been left with no alternative but to cease trading.”
The FSA has confirmed that the network has requested to withdraw its permission to carry out regulated activities.
The firm’s auditors raised concerns over the group’s future in November after it posted an operating loss of £1.3m for 2008.
The auditors said there was “a material uncertainty which may cast significant doubt about the group’s ability to continue as a going concern.”
Over the past year, Money Marketing has heard from a number of ARs who say they are owed commission by the firm.
In May this year Money Marketing revealed that one AR had a county court judgement granted against the network for unpaid commission.
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Readers' comments (14)
Anonymous | 21 Dec 2009 7:49 pm
Why did the FSA allow this situation to continue as long as it did.
Part of the answer is in a question that’s been bugging me for ages. WHY WAS THE MORTGAGE TIMES DECEIT NOT EXPOSED PROPERLY BY THE FINANCIAL PRESS MONTHS AGO? It’s what you’re here for and I think you’ve badly let down your industry. If you had done this then the FSA might have taken a more active interest and the remaining brokers could have moved networks at a time of their choosing.
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Anonymous | 22 Dec 2009 10:25 am
I hope the authorities investigate the actions of the board of directors of the Mortgage Times Group.
It is clear that many people feel aggrieved by the repeated examples of misinformation and wonder where their money was directed. For my part, I wonder how they chose to pay certain parties but not others.
The directors will be personally liable in respect of certain debts of the company - those which arose after they knew the company was heading towards insolvency.
This is likely include all membership fees collected when they knew they could not pay debts as they fell due. It may also include all work taken on during this time.
If you believe you may have been charged after this time I strongly suggest you make a formal complaint to the correct authorities. It seems awful to think that honest authorised representatives and low level staff will be facing a miserable Christmas whereas the directors will be retiring to their plush mansions.
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Anonymous | 22 Dec 2009 12:06 pm
Can anyone actually confirm that it is in administration?
There is nothing on any official record to suggest this, the website is silent, the company has not made a statement, the administrator has not made a comment and the FSA have not made a comment about administration. It would appear that this is a decision which has yet to be made but has been leaked to the public.
As an aside, I wonder what prompted the entire board of directors to change their addresses to 247 Tottenham Court Road on 14 October 2009?
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Anonymous | 22 Dec 2009 1:52 pm
Difficult times indeed.
Not wishing to be seen as a vulture, but Virtual Net network (for whom I am Sales Director) are prepared to work over the holiday period to try to help all quality mortgage advisers effected by this announcement and who need to be able to trade again.
No shortcuts, no messing, just a listening ear and people to help action paperwork etc.
Contact me on peterlivett@vneurope or 07885022418
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x mt staff member | 22 Dec 2009 2:11 pm
Can anyone actually confirm that it is in administration?
There is nothing on any official record to suggest this, the website is silent, the company has not made a statement, the administrator has not made a comment and the FSA have not made a comment about administration. It would appear that this is a decision which has yet to be made but has been leaked to the public.
As an aside, I wonder what prompted the entire board of directors to change their addresses to 247 Tottenham Court Road on 14 October 2009?
Answer:
MT used to have 2 offices - 247 and 279 Tottenham court road but once the lease ran out on 279 all correspondence was directed to 247.
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Anonymous | 22 Dec 2009 5:30 pm
I feel very sorry for all the ARs and Employees who were left in the company. I would like to request to FSA to make full enquiry of the affairs of the company till they reach to the bottom of the cause and hope to see everything in black and white very soon.
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ar of mt | 22 Dec 2009 5:48 pm
x mt staff member | 22 Dec 2009 2:11 pm
Can anyone actually confirm that it is in administration?
---------------
the FSA register:
'Current status: Authorised - Closed to Regulated Business'
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Anonymous | 22 Dec 2009 10:21 pm
It is not currently in administration but it will be by 27 December 2009. At the moment it is not trading.
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Paul McMath | 22 Dec 2009 11:03 pm
Unfortunately Mortgage Times was due to fall, it was a matter of when. I had been an AR with them for a few years and left last December as they owed me a lot of money. I complained to the FSA in writing and guess what? I never heard anything. So as far as I am aware the FSA were informed but chose to do nothing.
Luckly I did get my money from MT in september this year, but they had to pay me in installments.
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Anonymous | 23 Dec 2009 11:46 am
Throughout this sad saga , the question I would like to ask is Did the Directors continue to draw their salaries knowing that the monies being received should indeed have been paid to the AR's instead.
Where on earth was the FSA through all this, clearly their compliance /supervisory staff must have been aware of what was happening to this firm given all the publicity surrounding the non payment of proc fees etc ; another episode of complate MISMANAGEMENT
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