Govt delays 'phoenix' firms reforms

clock

The Department for Business, Innovation and Skills (BIS) has delayed tackling "phoenix" companies until next spring due to industry opposition to reform.

The Insolvency Service proposed in March to reform "pre-pack" administrations by the autumn but this will be held back until April 2012, the Telegraph reports. In pre-pack administrations, companies about to go under are allowed to restructure and be sold to new owners, who are usually the company's existing management team. One of the reforms proposed by Ed Davey, minister for employment relations, consumer and postal affairs, is enforcing a three day notice period before a pre-pack deal can be struck. This would allow creditors to come forward to express concerns about any new de...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Your profession

Consumer Duty Alliance looks to attract advice industry talent

Consumer Duty Alliance looks to attract advice industry talent

New Talent Alliance will be chaired by M&G Wealth Advice MD Tom Hegarty

Isabel Baxter
clock 27 March 2024 • 2 min read
PA Working Lunches: Register today to hear from SimplyBiz

PA Working Lunches: Register today to hear from SimplyBiz

Join us for an informative session worth one hour of CPD

Professional Adviser
clock 27 March 2024 • 1 min read
FCA warns firms and finfluencers to 'keep social media ads lawful'

FCA warns firms and finfluencers to 'keep social media ads lawful'

Regulator sets guidance for financial services promotion

Isabel Baxter
clock 26 March 2024 • 3 min read