A FORMER CHIEF of the ICAEW has called for a crackdown on the ‘cosy’ relationship between insolvency practitioners and asset-based lenders.
Eric Anstee, who now runs investment firm City of London Group, told the Daily Telegraph that asset-based lenders must be regulated so that businesses are treated fairly.
“There needs to be a thorough examination of insolvency practitioners’ relationship with invoice finance firms. There are a lot of conflicts of interest,” he said.
His comments follow an investigation by the Telegraph, which highlighted allegations of lenders charging excessive and opaque fees and “profiting” from administrations, with business owners claiming they have been forced into administration unnecessarily.
There have also been complaints of alleged collusion between administrators and invoice finance firms over insolvencies.
Anstee said that since the insolvency industry is already regulated, it needs to scrutinise how it works with the asset-based lending industry.
Engineering and technology executives have voiced concerns over the government’s industrial strategy and the need to fill the R&D funding and long-term investment gap in a post-Brexit Britain
The latest opinions from Accountancy Age on Making Tax Digital, and outline plans to evolve the UK's corporate governance regime
This year’s Finance Act is 649 pages, the second longest recorded, and highlights the increasing complexity for taxpayers of an ever expanding tax code
Kevin Reed discusses the worrying findings from HMRC on micro-businesses' problems handling Real-Time Information, and the latest thoughts on how accountants can provide value-added services