Failed broker Ward Evans has been put into liquidation ahead of a court hearing later this year to determine liability for its collapse.

A spokeswoman for liquidator Ernst & Young said that moving ...

Failed broker Ward Evans has been put into liquidation ahead of a court hearing later this year to determine liability for its collapse.

A spokeswoman for liquidator Ernst & Young said that moving the company into liquidation was necessary in order to aid the ongoing investigations and to progress the payment of creditors. She said a court hearing would be held at the end of this year to determine liability and outline the funds available to creditors.

A liquidation committee has also been formed comprising representatives from insurers with exposure to Ward Evans' to make decisions on the liquidation on behalf of other creditors. Members of the liquidation committee are Steve Smith from AIG, Chris Robertson from Zurich, Paul Davidson from Norwich Union, Mike Smith from Ace and Lloyd Hanks from Groupama.

Ernst & Young has appointed law firm Hammonds to advise it on proceedings. As a liquidator, it cannot push for criminal prosecution.

But Chris Robertson, Zurich's Leeds-based financial controller who is on the liquidation committee, said that the insurers may instigate criminal action.

"It will depend on what comes out of the Ernst & Young investigations," he said.

"We're not going to throw good money after bad," Robertson said.