A man has been arrested and released on bail over alleged financial irregularities following the liquidation of London market brokerage Dennis Hilton.

Denis Hilton has been in the hands of liquidators Crouch Chapman Benedict Mackenzie (CCBM) since June 1998.

The man cannot be named for legal reasons, but a spokeswoman for City of London Police said of the case: "A 30-year-old man has been arrested on alleged financial irregularities. He has been bailed to appear back at Bishopsgate police station on February 14, 2000. But he has not been charged."

Ian Williams, who is dealing with the case for CCBM admitted that lack of income had not been the only contributing factor in Denis Hilton going into liquidation.

He said: "The company went into liquidation because its income from brokerage was insufficient to meet overheads. There were other problems, but it would be totally wrong of me to discuss them.

"However, in my opinion the lack of income was the main problem."

General insurance broker Denis Hilton operated a commercial lines account.