Unlicensed Insolvency Firm Shut Down in Manchester
In a recent crackdown on unauthorised financial services, a Manchester-based company has been forced to cease operations. Save Consultants Ltd, which claimed to offer insolvency practitioner services, was wound up by the High Court in Manchester on July 2, 2024, following investigations by the Insolvency Service.
The Company’s Claims
Save Consultants Ltd marketed itself as an alternative to formal insolvency proceedings. They promised to help directors in financial distress by:
- Assisting in selling their interest in struggling companies
- Allowing them to leave their debts behind
- Helping individuals regain control of their finances
- Putting businesses on a more secure financial footing
The company boasted of its experience in corporate restructuring and the insolvency industry, claiming to have helped hundreds of company Directors across the UK. They even advertised the ability to legally sell companies within just 48 hours for a one-off payment.
The Reality
Despite these bold claims, investigations revealed that neither the current nor former directors of Save Consultants Ltd were licensed insolvency practitioners. This is a crucial requirement for providing such services in the UK.
David Usher, Chief Investigator at the Insolvency Service, stated:
“Save Consultants claimed to offer services to the public which put the integrity of the insolvency regime at risk. Our investigations indicated that they were offering the services of an insolvency practitioner without the authority to do so.”
The Investigation
The Insolvency Service’s investigation uncovered two now-defunct websites used by Save Consultants to advertise their services. These sites promoted the company as a “unique alternative to formal corporate insolvency in the UK” and listed services including:
- Debt restructuring
- Crisis management
- Creditor negotiations
However, the websites failed to explain crucial details such as:
- What would happen to companies once sold
- How Save Consultants would handle liabilities
- How company directors would avoid being held accountable for their actions
Lack of Cooperation
Throughout the investigation, Save Consultants’ Directors failed to cooperate with requests for documentation. This non-cooperation made it impossible for investigators to determine who was ultimately in control of the company’s affairs.
The Outcome
As a result of these findings, the Official Receiver has been appointed as the liquidator of Save Consultants Ltd. The company has been closed down to protect the public interest and prevent further unauthorised trading.
A Reminder About Insolvency Practitioners
This case serves as an important reminder that insolvency work, such as acting as a liquidator or administrator for a company, is strictly regulated in the UK. Only licensed insolvency practitioners are authorised to perform these duties.
To become a licensed insolvency practitioner, individuals must:
- Pass the Joint Insolvency Examinations Board exams
- Meet requirements set by regulatory bodies, including:
- Evidence of insolvency experience
- Proof of fitness and propriety
- One or more professional references
If you’re seeking insolvency services, always verify that you’re working with a licensed practitioner to ensure your interests are properly protected.
This article originally appeared on The Insolvency Service website here