Choosing a licensed insolvency practitioner
All is not what it seems when choosing a licensed insolvency practitioner to offer impartial advice.
Unlike accountants and lawyers, they do not retain clients and have no annual repeat fee earning abilities.
Therefore, when a client is signed up, the clock ticks, as sooner than later, you as a corporate client will no longer exist.
The IPs licensing body strictly controls the practice. However, with the recent Coronavirus pandemic. Many unregulated individuals appear to provide unqualified advice.
It is essential to therefore understand from day one whom you are dealing with.
Do they have:-
- Professional Indemnity Insurance
- Is the advice given supported by a licensed Insolvency Practitioner?
- What experience do they have?
- Are they bonded to deal with the assets of the company?
Additionally, ensure you understand the duties of an Insolvency Practitioner.
The profession has attracted significant sharp practice by inexperienced sales individuals selling on your lead to IPs (Illegal).
So if in doubt, check their license out by viewing the following.
In England and Wales, Insolvency Practitioners remain licensed and recognised under the Insolvency Act 1986 by:
Insolvency Practices Council (IPC)
The Insolvency Practices Council (IPC) carries out investigations. It examines the ethical and professional standards of the licensed insolvency profession in the UK, while proposing recommendations for improvement to licensing bodies. At the same time, considering if IPs adopt those standards—an independent council funded by a levy on the authorising bodies.
The Association of Business Recovery Professionals, R3, is a trade association for insolvency professionals in the UK. It represents its members’ views of government and the media while advising its members who are insolvency practitioners on current insolvency law and practice. Look for the R3 on the IPs website to recognize membership and their ongoing professional development.
Suppose you have an overdrawn directors loan account. Discuss it in detail, making a note of what is required.
REMEMBER: Note all said for your peace of mind.
Do not accept phrases like:
- Don’t Worry;
- It’ll be all right.
If directors’ loans remain overdrawn and you either fail to disclose or brush over the subject, it will haunt you later.
Be as open and honest as possible, as the IP can’t help unless they have a clear picture.
Act sooner than later.
Take care not to pay friends or family in preference to other creditors.
Avoid being struck off as a director, and ensure you understand directors duties and responsibilities.
And finally, if in doubt, please contact the team at HBG Advisory on 0800 612 5448.