Prestbury was down to its last £40,000 prior to PTFS deal

Prestbury Financial has revealed it had only £40,000 in cash assets before agreeing to transfer its appointed representatives to Personal Touch Financial Services.

Insolvency advice led Prestbury directors to conclude that the network could not continue to trade in its current form.

Prestbury has signed a deal to transfer its ARs to PTFS but some of them are concerned they will not be paid if they choose not to.

One AR says: “Our owed commissions are being used as inducements to join PTFS. If we decide not to do what the firm has agreed to, what contingencies does Prestbury have in place to deal with monies owed?”

Lee Birkett, chief executive of Prestbury Financial and owner of Prest- bury Investment Management, and Kevin Sample, sales director of Prestbury Financial, have been appointed non-executive directors of PTFS.

They will head up a national sales centre known as PTFS-Prestbury. The deal stipulates that all ARs must use PIM as a packager for the first year.

In a letter to ARs sent last week Birkett says: “PTFS will fast-track all Prestbury accounts by agreeing to rely on the Prestbury referencing process.”