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Prestbury slapped with winding up order after being hit by provider clawbacks

A winding up order was granted against Prestbury yesterday after the firm was unable to pay creditors.

In a statement released this morning, Prestbury says the firm has encountered problems transferring a number of ARs to Personal Touch Financial Services due to them either deciding to transfer to a different company or because they could not reach acceptable terms with Personal Touch.

In September the two firms agreed a deal for up to 80 ARs to be transferred from Prestbury to Personal Touch.

Prestbury says it has been hit by life companies making claims for clawback commissions in respect of policies written by ARs which have now been cancelled.

It says this has caused the life companies to withhold commissions which were expected to be received by the firm.

Prestbury also says it is owed £360,000 by ARs who have been unable to pay the firm.

The statement says: “These matters have had a dramatic adverse effect on PFL’s cashflow. At a court hearing held yesterday, a winding up petition by a creditor of PFL was granted and The Official Receiver was appointed to PFL.”

The firm’s nominated advisers, John East & Partners, has resigned with immediate effect. Trading in the firm’s shares remains suspended and if no new nominated adviser is appointed by January 18 trading of the company’s shares on AIM will be cancelled.

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