Speaking to Money Marketing on December 21, a staff member who did not wish to be named revealed that employees were called into a meeting that day and told the network was about to be placed into administration.
HMRC’s petition to wind up the network is due to be heard in the High Court of Justice Chancery division on January 13, and if it is successful Mortgage Times will be placed into compulsory.
In an email sent to appointed representatives by Mortgage Times on December 21 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 said: “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 added: “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.