Under a deal signed between the two firms in September 2008, Prestbury was to transfer all its appointed representatives (ARs) to PTFS by October 2008.
PTFS would pay commission payments if the ARs joined PTFS on the same commercial terms as they were on at Prestbury.
However, as Mortgage Solutions exclusively revealed last week, Birkett took legal action against PTFS as the deal did not proceed as anticipated.
Birkett was unable to give exact details of the case for legal reasons.
He explained: “I have taken extensive legal advice with my legal team during the last twelve months which has led to proposed legal action being set out in further detail to PTFS. I have been very encouraged by all the messages of support which I have received.”
A broker affected by the deal contacted Mortgage Solutions to say he was owed thousands of pounds but was unclear on the next step to attempt to recoup the outstanding fees.
He said: “As far as I was concerned, I did everything right. I went to the courses along with other advisers but I wanted clarification on certain aspects. I asked for that clarification but it never arrived. My application for membership was turned down on the basis of non-disclosure but I dispute this.”
He added that he had not received the commission due to him despite repeated attempts.
“I have contacted PTFS to ask about the commission but have been told that they cannot transfer the amount because it is subject to a legal process.”
Birkett said there were no claims or allegations made against Prestbury by PTFS.
He added: “As far as I am aware, the FSA is and will remain, entirely satisfied with the manner in which I have conducted myself throughout this unfortunate sequence of events.”
At the time of going to press, PTFS was unavailable for comment.
