Citri in limbo as AR deal with Openwork collapses
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The future of Citri is in doubt after a deal to transfer its 138 advisers to Openwork has fallen through.
In February Citri announced that it was becoming an appointed representative of Openwork and moving all its registered individuals across. But Openwork has confirmed to Mortgage Strategy that a number of its advisers were not good enough to join the network.
A spokesman for Openwork says: “Following initial discussions with Citri, we began our detailed vetting process which identified a number of shortcomings that meant some of its individuals did not meet the minimum standard for becoming members of Openwork.
“As a result, and due to challenges presented by the depressed mortgage market and economy, Citri concluded that it was no longer a sustainable business and is in discussions regarding a corporate restructuring.”
But Openwork says it has been talking to a number of Citri’s advisers and 80 of them have accepted contracts with Openwork, while several more are going through its vetting process.
Openwork would not comment on whether it was looking to buy the assets of Newcastle-based Citri, or whether these were up for sale.
But a spokesman says: “We are in discussions with Citri about its business with the central objective of maintaining the ability of its advisers to continue trading and supporting its clients.”
A number of advisers have contacted Mortgage Strategy alleging that they have been left in limbo and are unsure if they will receive commission owed to them for deals placed under Citri.
One adviser tells Mortgage Strategy: “I have not been paid since March and I’m owed £3,000. Another adviser I know is owed £50,000. We have not yet received confirmation whether this will be paid.”
Another broker claims he has been having trouble trading because he has not received his commission from Citri.
Gary Watts, director of Which Network, says that if the affected advisers do decide to become ARs of Openwork it will provide them with some stability.
He says: “A lot of Citri’s advisers will start to be contacted by other networks that will see it as an opportunity for a feeding frenzy.”
He recommends advisers who are considering joining another network to think carefully about its business model and make sure it fits with theirs.
Keith Atkinson, chief executive of Citri, launched the company in 2007. In June 2009 Citri formed a partnership with Openwork that allowed advisers access to its mortgage panel.
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