Should investigators be appointed receivers?
The Independent Banking Advisory Service said it has received a large number of complaints from ‘victims’ of fee-hungry investigating accountants, accusing them of writing overly pessimistic reports of a company’s performance in the hope it will go into receivership. The Society of Practitioners of Insolvency claimed, however, that less than one-third of investigating accountants are subsequently appointed receivers. In these cases, it said, more could often be achieved by the same firm than by one forced to go in ‘cold’.