City of London Police have written to the lawyer representing a rabbi who was arrested during a probe into the wealth management company HBFS to confirm there will be “no further action” against him.

Rabbi Benji Silverstone, head of investment company HBFS Wealth Management’s Manchester office, had been arrested on December 19.

But an email sent by Katie Watkins, City of London Police staff investigator, on March 28 said: “Please accept this email as notification that there will be no further action taken against your client, Mr Silverstone.”

The emailed added that should “new information come to light  then your client’s position will be reconsidered in this investigation.”

Rabbi Silverstone has worked for the wealth management company since April 2013.

He had previously worked as the Manchester director of Aish HaTorah for more than nine years having studied in the Mir Yeshiva in Jerusalem before qualifying as a rabbi at Aish Yeshiva.

A 49 year-old from Borehamwood, also arrested in the investigation into HBFS, has been released “under police investigation”.