Last week the Telegraph newspaper alleged that he offered to use political contacts to set up foreign business deals.
Mr Pritchard denied any wrongdoing and referred himself to the watchdog after the “hurtful” claims were published.
The Parliamentary Commissioner for Standards decided there was “insufficient evidence” for an inquiry.
The Telegraph alleged that Mr Pritchard had suggested investing £10m in an Albanian hotel chain, and that he asked for £3,000 a month in consultancy fees, and three per cent of any deal, implying that he was looking to be paid £300,000 on top of his fee.
The newspaper revealed that their reporter contacted Mr Pritchard in Malta, after being tipped off that Mr Pritchard, a member and former chairman of the all party parliamentary group for Albania, might be using his parliamentary trips abroad for business purposes.
A series of meetings then followed, during which Mr Pritchard is reported to have made repeated offers to set up deals in countries where he has contacts. During one meeting, he allegedly sent a text to the mayor of Tirana, the Albanian capital, with a query about investment opportunities – though he specifically said that he would not lobby on behalf of clients.
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