It is expected that Prestbury ARs will be authorised and conducting business with PTFS by October 6.
Prestbury has posted a statement on the London Stock Exchange outlining the details of the transfer. Commission payments owed to ARs for completed business will be paid by PTFS, subject to a cap of £500,000.
The amount of commission paid to ARs is dependent on individual agreements set up between brokers and PTFS.
If there is outstanding commission that PTFS does not agree to pay, then responsibility will revert back to Prestbury.
Lee Birkett, chief executive of Prestbury, and Kevin Sample, sales director, will oversee the transfer as part of their freshly minted roles within a PTFS-Prestbury National Sales Centre.
In a letter to Prestbury ARs and seen by Mortgage Strategy, Birkett says: “I am pleased to confirm that we have today entered into a legally binding agreement with PTFS.
“Sample and I have accepted terms to be principals of PTFS-Prestbury and we look forward to continuing our long-standing relationships with the Prestbury firms in our new capacities.
“The transfer by you to PTFS has the full approval of the Prestbury board as being in the best interests of you and your clients.”
The statement on the LSE says the transfer was triggered by insolvency advice given to the company directors. As of June 30 2008 Prestbury had a cash in hand amount of approximately £40,000.