Citri to be placed into liquidation
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Citri will be placed into liquidation on July 4.
Begbies Traynor, which is advising Citri, has not yet been appointed as its liquidator but says it expects to be following the collapse of a rescue deal.
The rescue deal would have meant the company would have been placed into administration, but instead it will enter into liquidation.
It is not yet known what will happen to the commission owed to former appointed representatives of Citri.
Mortgage Strategy reported last month that a deal to transfer 138 of Citri’s advisers to Openwork had fallen through.
At the time, Openwork said it was in discussions with Citri and looking at ways its advisers could continue to trade, but it is not known if Openwork was the firm looking to rescue Citri.
A number of advisers have contacted Mortgage Strategy saying they are owed thousands of pounds in outstanding commission.
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Readers' comments (10)
Anonymous | 7 Jun 2011 5:27 pm
I feel sorry for these advisers - I lost thousands when my network collapsed a few years ago - and it couldnt have come at a worse time.
I bet the Directors have still got to keep their houses and luxury cars right?
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TOM O'NEILL | 7 Jun 2011 9:41 pm
MY FIRM IS OWED ALMOST £15000 BY THIS FIRM FROM ALMOST A YEAR AGO AND THEY HAVE ALWAYS BEEN UNWILLING TO PAY FOR A NUMBER OF CREATIVE REASONS.
YET AGAIN A LARGE NETWORK FOLDS... WHEN WILL ANYONE HAVE THE GUTS TO SAY THESE NETWORKS JUST DONT WORK. THE ONLY WAY IS DIRECT AUTHORISATION??
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Anonymous | 8 Jun 2011 12:03 pm
I must say I found them a very nice bunch of people until I was trying to leave a couple of months ago. Im sorry to see them go under but not surprised. As soon as I started working with them people were trying to poach me away so im sure most advisors will turn out alright.
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Alan Bird | 9 Jun 2011 10:00 am
In Dec 09, Citri was paid £4800 commission on a life insurance I arranged on my Son and to date has not paid anything due to indemnity rules. I have repeatedly requested assurance that this money was ringfenced in the event of Citri going under, but have not had any assurance. The FSA does not want to know either. When will there be rules to protect the Broker?
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Anonymous | 9 Jun 2011 11:39 am
I find it LOL the comments here are been posted as fact when they are from it.
When will the unscrupulous likes named above realise the antics of them and their brother advisers cause these issues.
I'll bet them the imaginary debts posted above that Citri is owed more than double from its advisers past and present than what Citri may owe in final commissions.
There lies the real discussion in these issues.
The problems will not be solved until RDR focuses on removing life commissions period and requiring adviser to take a fee. Good luck with that; which is why they will continue to churn and burn until the option is removed and order restored.
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James John | 9 Jun 2011 12:39 pm
I am afraid reading some of the paragraphs above that most should go back to school firstly and learn to put sentences together. I have taken on a recent CITRI broker who is a very competent advisor, being very ethical with integrity high on his agenda, he was lucky enough to get out early whilst openwork have accepted some, but not all CITRI members. The comments from Openwork about advisors not being good enough is of course subjective to their own selection which makes me feel that in fact Networks are becoming a law onto themselves in regards to compliance as many of the implemented process are again subjective whilst they emulate one another with so called exclusive relationships with tesco style insurers. So in effect we as advisors are no different from each other regardless of network whilst being very similar to a bank! I agree with comments about Directly Authorised I think Networks have done an amazing job of scaremongering on compliance whilst becoming parasitic on naive advisors wh may not be compusmentus with things compliance... Come to think of it...is anyone? Including the FSA?
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Luke Atkinson | 9 Jun 2011 1:28 pm
I'm assuming ''Anonymous'' @ 11:39 is remaining anonymous because he/she is illiterate and does not want to be bombarded with offers for basic english lessons?
Perhaps the FSA should issue a ruling whereby networks either have to ringfence commission owed to its ARs or make ARs preferential creditors when entering administration?
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Anonymous | 9 Jun 2011 3:02 pm
I would like to say that i found this a very good company to work for and really admired the chief exec - Keith Atkinson, a genuinely nice and professional driven guy- but as time went on and head office people started leaving the writing was on the wall for quite a while. Unfortunately due to credit history problems i was one of the ones that were rejected by Openwork so after 20 years in the business i was cast into the wilderness. Upon tying up the loose ends with Citri, the behaviour and attitude of the staff was nothing short of disgusting though - like once you're history you become vermin! Am now glad to be out of financial services - an enormous cloud has now lifted!
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Also Anon | 10 Dec 2011 7:58 am
I too have been suckered in by Citri, and like anonymous have been cast into the Financial Services wilderness after being in the financial services business since 1978. Citri have never paid me the commission due ( almost £3700 ) on a Prudential Policy I sold, and I am now almost destitute, living on Employment Support Allowance of just £55 per week. Like the previous correspondent, I too am out of the game because I have ccj's, having lost my home because Citri would not pay me, therefore I could not pay the mortgage. My wife walked out on the day the house was repossessed.However, I too feel a strong sense of relief that I am out of that crazy industry.
Thanks Keith! - I suspect you will be alright!
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Anonymous | 24 Dec 2011 8:34 pm
A shame for all involved. I worked for Citri back in 2008 but as a mere IT support technician. Great place to work and I it is such a shame that this has happened.
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