County councillors have summoned the financial agents that recommended Kent County Council invest in Icelandic banks to appear at a meeting to answer questions about their advice.

Representatives of the firm Butlers, used by KCC to provide advice about which banks to put money into, are to appear at a meeting of the authority’s cross-party watchdog committee on Wednesday.

They are expected to face tough questions from members of the policy scrutiny committee about why they continued to recommend the three Icelandic institutions that KCC has £50million tied up with, as well as explain why no warning signs were picked up about the potential risks.

However, the meeting could end up being held behind closed doors to protect commercial confidentiality.

Meanwhile, it has emerged councils were told seven months ago that they were becoming too reliant on the advice of ratings agencies. The Chartered Institute of Public Finance (CIPFA) urged local authorities to take into account other market indicators when making decisions based on advice from their advisers.

A newsletter issued to councils in March said that while credit ratings did offer an independent objective assessment, "practitioners should always ensure they are being used appropriately".

County Hall politicians clashed over who should shoulder the blame for the decision to invest at a full council meeting, with the opposition Labour group demanding the resignations of council leader Cllr Paul Carter and cabinet member for finance Cllr Nick Chard.

But they were blocked from moving a vote of no confidence.

Liberal Democrat leader Cllr Trudy Dean welcomed the news that advisers had accepted an invitation to come to County Hall, saying the public needed answers. "There are serious questions that need to be answered but they are not."