A senior spokesman at the firm has confirmed the network has been unable to secure PII and says members have been alerted to the problems.
He says the firm is in talks with the Financial Conduct Authority.
Mortgage Strategy understands some members have been unable to trade since Sunday. According to the FCA register, the network has 11 member firms.
The business made a £182,532 loss in the 12 months to 31 March 2012, according to the latest accounts filed with Companies House. This followed a £303,566 loss in 2010/11.
The firm also operates VN Direct, a support services offering for directly authorised advisers.
Virtual Net Europe declined to comment further.