Cotton and Blackmore emailed Network Data ARs last Friday, offering them the chance to move to Openwork within a week and with financial assistance for those struggling with cashflow.
The deal has been arranged through First Affinity, which is not FSA-registered, but was incorporated on Companies House last November, the day after Network Data announced Cotton’s appointment as chief executive of Mortgage Broking Solutions Limited which it acquired from Manchester Building Society.
Network Data was suspended from Aim last week and a potential transfer of ARs and staff to Lighthouse Group collapsed.
In the email, First Affinity says the new offer is “no way connected to an arrangement with Network Data Holdings” and therefore would not be able to guarantee any missing commission payments.
Openwork sales and marketing director Andy Ferns says: “We are delighted to welcome First Affinity to Openwork. We see this as a great endorsement of our proposition and further recognition that Openwork is a great partner for brokers.”
Neither Cotton nor Blackmore was available for comment.