England’s legal regulator has launched a formal investigation into law firm Gunnercooke over its work for companies linked to mortgage provider Market Financial Solutions (MFS), which collapsed earlier this year amid fraud allegations.

The Solicitors Regulation Authority opened the probe in June following analysis of Gunnercooke’s relationship with Twinwin, a lender now insolvent and accused by creditors of facilitating fraudulent wrongdoing. Administrators allege that Gunnercooke certified debt documents for Twinwin, which was allegedly used by MFS owner Paresh Raja to siphon funds from creditors including Barclays. Raja has denied wrongdoing and claims there was no fraud.

The SRA is examining whether Gunnercooke failed to act on fraud warning signs and improperly relied on potentially forged evidence. Among its creditors are Barclays, Jefferies, and Apollo’s Atlas SP Partners, who collectively lent over £2bn to MFS. The firm’s collapse in February raised concerns about underwriting standards across global financial institutions.

Gunnercooke, which operates 16 offices across the UK, US, Germany, and Austria with over 600 staff, stated it cooperated fully with the SRA and rejected any suggestion of misconduct. The investigation adds to ongoing scrutiny from the Financial Conduct Authority and the Bank of England into parties involved with MFS.