Directors, who mis-sold products through a failed company, are starting up again and taking on the claims of their failed company’s creditors and are making claims to the Financial Services Compensation Scheme (FSCS).
The Financial Conduct Authority (FCA) is now banning directors of failed financial advice companies from being involved in such companies.
The FCA estimate that consumers lose about £2.4m a year from claims made through a phoenixed firm.
Advice firms are up in arms as the FSCS pay compensation through a levy system funded by their members and the bill this year is £833m as opposed to £532m last year.
For more information on bankruptcy, liquidation, administration and all the other insolvency procedures, or to take advantage of our free consultation and business health check, please telephone Stella Flemmings on 01377 257788 and she will make you an appointment with one of our insolvency professionals at our Driffield, Hull, Grimsby, Scunthorpe or York offices. Meetings can be held virtually or in any of our offices whilst observing the socially distancing guidelines.
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