July 4 is confirmed as the date Citri will be put into liquidation

13 June 2011 | By Natalie Thomas

Citri’s financial adviser Begbies Traynor has confirmed the firm will be placed into liquidation on July 4.

Begbies Traynor has not yet been appointed as liquidator but says it expects to be following the collapse of a rescue deal.

It is thought a third party was looking to buy part or all of Citri, which would have seen it placed into administration. Instead it will enter into liquidation.

Mortgage Strategy reported lastmonth that a deal to transfer 138 of Citri’s advisers to Openwork had fallen through.

Some advisers transferred to the network but a number were rejected because they did not pass Open - work’s vetting process.

When the deal fell through Openwork said it was in discussions with Citri and looking at ways its advisers could continue to trade.

It is not known if Openwork was the company that was looking to rescue Citri.

What will happen about the commission owed to former appointed representatives of Citri is unclear. It is believed all secured creditors have been paid.

Prefer ential creditors need to be paid before assessing whether there are funds left for unsecured creditors, such as advisers.

A number of former Citri advisers who joined Openwork received an email last week from the network reassuring them that they would be paid for business placed through Citri’s wealth management arm, Citri Wealth Management.

The situation regarding commission owed from its financial arm, Citri Financial Planning, is not known.

A number of advisers have contacted Mortgage Strategy saying they are owed thousands of pounds in outstanding commission.

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