Serious questions must be addressed in network probe
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The news that The Mortgage Times Group has made an application to go into administration is a welcome development. Let’s hope this move is accompanied by a serious investigation into what lay behind the network’s demise.
Below are some important questions that have yet to be resolved about the affair.
- Why did the directors claim the company had been put into administration on December 21 2009 when it now transpires the first application for administration was last week?
- Did R&C write to the directors on October 14 2009 giving the company 28 days to clear its tax bill? If so, did this cause the directors to change their addresses as listed on the Companies House register from their mansions to that of the office in preparation for insolvency?
- The company instructed leading legal firm Carter Ruck - at more than £1,000 an hour - to get a trade newspaper to back down on claims that the company was about to fail. Was Carter Ruck paid ahead of ARs who had paid membership fees?
- What part did the regulator play in all this? Why has it not decided to formally investigate the failure of the network? Is the FSA compromised by its failure to act and if so, who should carry out an investigation into the affair?
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