Archive for July 2022
35% of banned directors abused Covid support
7 out of every 20 UK company directors struck off in 2022 were guilty of abusing the Government’s Covid-19 loan or job support schemes, shocking statistics reveal. Between April and May, the Insolvency Service disqualified around 36 directors following claims of abuse and fraud, which is staggering. Still, many individuals and smaller companies may never…
Read MoreInsolvency Service adjusts IVA payment rules
The Insolvency Service is to overhaul the Individual Voluntary Arrangement (IVA) regime in the wake of the cost of living crisis. Individual Voluntary Arrangements are legally binding court-approved agreements that people make to pay all or part of the debts they owe. An IVA is a statutory insolvency procedure managed by an insolvency practitioner…
Read MoreBeware of the mini-bond market
A mini-bond is a niche type of unregulated investment that you don’t hear about too often. But here at I&L, we like to discuss topics that will help to protect and educate our clients. As a result, mini-bonds is the focus of this post. So what exactly is a mini-bond? Mini-bonds are a form of…
Read MorePolice and financers warn of online bank fraud
Bank customers lost a record £1.3 billion to online scams last year, according to lobby group UK Finance. In 2021, investment fraud accounted for nearly one third of losses, with the promise of high returns enticing potential victims. UK Finance’s Annual Fraud Report notes that scammers are aware that pension freedoms have given over-55s access…
Read MorePrepare for the zombie company storm
Directors and business owners should expect to see the beginning of the pandemic fallout during the second half of 2022. Currently, Britain’s economy is operating with a dangerously high number of zombies, insolvent companies that: Earn just enough money to continue trading Are unable to pay off their debt This miserable and worrisome situation is…
Read MoreIs the director disqualification process futile?
In March 2022, P&O Ferries’ chief executive Peter Hebblethwaite brutally dismissed 800 workers without the consultation required under UK law. His actions led to the press and people on social media demanding consequences for such insensitive and potentially unlawful actions. Additionally, the government agency responsible for investigating director misconduct, the Insolvency Service, has commenced civil…
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