Troubled direct life insurer Freedom Insurance will shut subsidiary Spectrum Wealth Advisers after an exodus of key personnel.

The staff departures mean it can no longer comply with its financial services licence requirements.

Freedom announced last year it was considering selling the dealer group, but in recent months said only that it intended to “exit the business”.

All agreements with its authorised representatives have been terminated.

Spectrum will support the transition of advisers and their clients to alternative dealer groups where requested, the insurer says.

The financial impact of the closure will be revealed when accounts are released.