Mortgage firm Black and White Group has withdrawn from the regulated mortgage market and put this part of the business into administration.
Chief executive Thomas Reeh resigned on Monday after the group announced it had voluntarily rescinded its Part IV permissions and will no longer be regulated by the FSA.
Reeh told Money Marketing: “The company is not in administration now but we are going to apply for it. The process takes a couple of weeks and has to be ratified by a court. This will affect the regulated side of the business.”
The firm said in a statement on Monday that it would focus on unregulated distribution strategies such as lead generation, secured loans, commercial loans and its mortgage packaging arm B&W Gateway.
Speculation has since arisen that Black and White had ceased trading but chief operating officer Adrian Childs told Money Marketing it is “not in administration at this time” and is still “conducting non-regulated business as normal but with a reduced staffing level”.
In December, it emerged that the FSA made a dawn raid at the firm and took police with them. The FSA says its investigation is still ongoing but that it was the firm’s decision to rescind its permissions.