PREMIUM
Caroline Palacio, head of insolvency and business recovery at Ellis Jones, and managing partner Nigel Smith, right, welcome senior associate Damon Watt AN “INSOLVENCY tsunami” is set to land when government support for struggling businesses ends, it has been claimed. The warning comes from Damon Watt, recently hired as senior associate in the insolvency and business recovery team at Dorset firm Ellis Jones Solicitors. Mr Watt said: “There is an insolvency tsunami waiting to land. “The government’s emergency provisions which have supported many businesses have been extended but this is delaying the inevitable. “Businesses will face greater pressure when support winds down, bounceback loan repayments become due and tax deferments end.
The virus crisis has pushed countless families close to a debt disaster
An extra 1.5 million people are expected to need financial advice this year
Internet adverts divert those struggling with money away from free help
Third-party lead generators pose as charities to entice vulnerable households
They can make more than £1,000 for passing on contact details of those in debt
Millions of Britons in need of debt advice due to the coronavirus pandemic could be pushed into unsuitable debt solutions by companies seeking to profit from commission, regulators have warned.
Britain s individual voluntary arrangement market is broken , the Financial Conduct Authority said in a 68-page review into the state of Britain s credit and debt landscape published yesterday morning.
It said commission totalling more than £1,000 handed to third-party lead generators paid to sign up vulnerable Britons and fees of up to £5,000 charged to those in debt had led to potentially harmful business models and poor practices which benefited neither consumers nor their creditors.
“It’s the final piece of the jigsaw,” says Sundeep Takwani, director of regulatory relations at the Association of Chartered Certified Accountants (ACCA), on its application to give up its status as a recognised professional body (RPB) for insolvency practitioners.
The organisation applied to the Secretary of State for Business requesting its withdrawal in February 2019 for the purposes of section 391 of the Insolvency Act 1986 after recognising it was no longer commercially viable for its members.
“From our perspective, the cost of insolvency regulation was becoming unsustainable,” says Takwani. ACCA had slowly began transferring some of its regulatory aspects in 2016 to other RPBs.
Association of Chartered Certified Accountants application to cease as a recognised professional body for insolvency practitioners
The Association of Chartered Certified Accountants has applied to the Secretary of State for Business to give up its status as a recognised professional body for insolvency practitioners.
From:
Revocation of recognition at the request of body
Notice in accordance with section 391N(3) of the Insolvency Act 1986
Association of Chartered Certified Accountants
On 20 February 2019, the Association of Chartered Certified Accountants (formerly the Chartered Association of Certified Accountants) (‘ACCA’) asked the Secretary of State to consider a request, made by it under section 391N of the Insolvency Act 1986, that the ACCA should cease to be a Recognised Professional Body (“RPB”) for the purposes of section 391 of the Insolvency Act 1986.