PracticeConsultingLiquidators face work ban.

Liquidators face work ban.

The government is considering banning accountants who report to banks on the financial status of companies in trouble from acting as their liquidators. Corporate and consumer affairs minister Kim Howells told MPs: ‘I have sympathy with the approach and I am giving it serious consideration.’ He made the announcement as MPs neared the conclusion of detailed committee debates on the Insolvency Bill, which provides for supervised moratoriums while attempts are made to organise rescues. Earlier, Labour MP Austin Mitchell demanded tougher regulation of the profession to stop practitioners opting for solutions designed to boost fees rather than promote rescues. He received support from Tory MP Richard Page, who said the case for a single regulator needed detailed examination. Page proposed a ban on investigating accountants acting for banks and then later acting as liquidators. Among those who agree are Jeffrey Lampert, chairman of housewares distributor Heritage plc, which went into receivership in 1996. He accuses Grant Thornton of recommending receivership when the company could have survived. Grant Thornton has always denied the allegations.

Related Articles

5 tips for SMEs to protect cash flow

Accounting Software 5 tips for SMEs to protect cash flow

5m Alia Shoaib, Reporter
Tyrie on Finance Bill 2017: ‘Making Tax Policy Better’

Consulting Tyrie on Finance Bill 2017: ‘Making Tax Policy Better’

11m Stephanie Wix, Writer
Managing partner Q&A - the year ahead: Richard Toone, CVR Global

Accounting Firms Managing partner Q&A - the year ahead: Richard Toone, CVR Global

12m Kevin Reed, Writer
Deloitte 'self-imposes exile' on government contracts to defuse PM row

Accounting Firms Deloitte 'self-imposes exile' on government contracts to defuse PM row

12m Kevin Reed, Writer
Managing partner Q&A - the year ahead: Julie Adams, Menzies

Accounting Firms Managing partner Q&A - the year ahead: Julie Adams, Menzies

12m Kevin Reed, Writer
Friday Afternoon Live: Deloitte's tech thing; PAC wants HMRC 'contingencies'; and Sports Direct

Business Regulation Friday Afternoon Live: Deloitte's tech thing; PAC wants HMRC 'contingencies'; and Sports Direct

1y Kevin Reed, Writer
Friday Afternoon Live: HMRC complaints rise; Deloitte scoops big audits; and corporate reporting woes

Audit Friday Afternoon Live: HMRC complaints rise; Deloitte scoops big audits; and corporate reporting woes

1y Kevin Reed, Writer
New head of equity capital markets for KPMG

Accounting Firms New head of equity capital markets for KPMG

1y Stephanie Wix, Writer