ICAS calls for changes to insolvency laws

by Rachael Singh

More from this author

10 May 2011

  • Comments
Ann Condick

ICAS CALLS ON GOVERNMENT to change insolvency laws to give greater protection to some unsecured creditors.

The Scottish institute suggested the government introduce legislation to protect consumers who have paid a deposit or purchased vouchers when a retailer collapses.

In the last year a consumers lost out when high profile companies such as Zavvi, Land of Leather, MFI and Farepak Foods entered administration, as vouchers and deposits are no longer redeemable.

ICAS is requesting new rules to force retailers to hold deposits and vouchers in a separate bank account that is not available to offset borrowing and ring-fenced for these creditors.

The recommendation is included in ICAS's response to a recently closed Insolvency Service consultation on recommended changes to the profession's regulation and legislation.

Ann Condick, (pictured) director of insolvency at ICAS, said: "This would be a bold move by government and it would need to consider how the requirement would work for smaller businesses who may not find it easy to operate a separate bank account.

"However, it is legislation that, with careful consideration, would be extremely beneficial for consumers and other unsecured creditors. We have witnessed a rise in high profile retail insolvencies over the last few years with some consumers losing out over the Christmas period which can be a difficult time for businesses and members of the public alike.

"Legislation of this nature would go some way to ensuring better returns for as many unsecured creditors as possible."

Visitor comments

blog comments powered by Disqus

Add your comment

We won't publish your address

By submitting a comment you agree to abide by our Terms & Conditions

Your comment will be moderated before publication

  • Send



Conservatoire for Dance and Drama, London, Permanent, Part Time, £60,000 pro rata




Get the latest financial news sent directly to your inbox

  • Best Practice
  • Business
  • Daily Newsletter
  • Essentials


Search for jobs
Click to search our database of all the latest accountancy roles

Create a profile
Click to set up your profile and let the best recruiters find you

Jobs by email
Sign up to receive regular updates with the latest roles suitable for you



Why budgeting fails: One management system is not enough

If budgeting is to have any value at all, it needs a radical overhaul. In today's dynamic marketplace, budgeting can no longer serve as a company's only management system; it must integrate with and support dedicated strategy management systems, process improvement systems, and the like. In this paper, Professor Peter Horvath and Dr Ralf Sauter present what's wrong with the current approach to budgeting and how to fix it.


iXBRL: Taking stock. Looking forward

In this white paper CCH provide checklists to help accountants and finance professionals both in practice and in business examine these issues and make plans. Also includes a case study of a large commercial organisation working through the first year of mandatory iXBRL filing.