Insolvency reform will cost businesses say Big Four and R3
Big Four and insolvency trade body R3 demand meeting with insolvency minister Edward Davey to discuss reforms to profession
THE BIG FOUR and insolvency trade body R3 have joined forces in their fight against proposed insolvency reforms.
A letter was sent by the consortium to insolvency minister Edward Davey requesting a meeting to discuss proposed changes which they feel outweigh benefits and reduce creditor returns.
The dispute is over the introduction of a complaints body which will deal primarily with insolvency practitioner (IP) fees.
R3 president Frances Coulson (pictured) said: “Under the new proposals, insolvency practitioner fees can be agreed by the majority of creditors but then challenged at the end by a minority creditor or angry director.
“The cost of making a complaint is free to the complainant, and if the complaint is not upheld it will be paid for out of the insolvent estate.”