The Financial Services Compensation Scheme has placed a network in default almost two years after the company failed to secure professional indemnity insurance.
Money Marketing reported back in June 2013 Kent-based network Virtual Net Europe had alerted members it was unable to secure PI cover. The network posted a £182,532 loss for the previous year.
At the time Virtual Net Europe had 11 member firms, some of which were left unable to trade.
The firm has now been included among the latest list of firms declared in default, which was published by the FSCS today.
Overall the FSCS placed 62 firms in default, 41 of which were investment and pensions firms.