23 November 2016: As a result of an increased number of reports of unregulated or unlicensed advisers targeting businesses or individuals in financial difficulties, the Association of Business Recovery Professionals (R3) has recently published two guides on the potential risks to the parties who are being targeted.
At a time when helpful, impartial and practical advice is most needed, these unregulated advisers are seeking to benefit from a distressed business or individual by claiming to be able to eliminate the financial problems and avoid the need for an insolvency practitioner altogether, in exchange for a fee of course. In reality, the input of an unregulated so-called “insolvency advisor” is only likely to worsen the position for the business or the individual in difficulty. For example, a business owner could potentially become personally liable for the company’s debts, they might be disqualified from acting as a director in the future or they might be subject to legal action if assets are sold for less than their true value – all as a result of taking unregulated “advice”.
The guides encourage business owners and individuals to take early advice from a reputable and licenced insolvency practitioner to ensure that they are receiving the best advice possible and can be found at the following links:-
- For businesses – "My Business is in Financial Difficulty..."
- For individuals – "I'm in Financial Difficulty..."
At BRI we always work to ensure that the advice we provide is relevant to that particular client so that they are fully informed of their options and responsibilities. This helps our clients deal with the problems at hand, not create new ones.
Should you or one of your clients be experiencing financial difficulties, please do not hesitate to contact one of the BRI management team for no obligation, impartial and practical advice.