Insolvency reform will cost businesses say Big Four and R3

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.”

Related reading