§ Mr. GorstTo ask the President of the Board of Trade what assessment he has made of the effect of the level of fees charged by insolvency staff for the administration of insolvency services on the interests of creditors; what controls exist to ensure that insolvency companies do not charge excessively for their services; and what plans he has to introduce legislation to impose limits on the fees that accountancy firms can claim.
§ Mr. Neil HamiltonFees charged by insolvency staff employed by accountancy firms are not under the control of the President and accordingly he does not have a role in determining their level or assessing whether they are appropriate in the circumstances of any particular case.
In receiverships, the level of remuneration is agreed by the secured creditor making the appointment. In liquidations, fees charged are subject to approval by the creditors who have a financial interest in ensuring that they are fixed at a reasonable level. The means by which they approve them are either through a committee of creditors or in general meeting. In the absence of such approval, remuneration will be paid on the scale laid down for the Official Receiver in general regulations. Where either the liquidator or the creditors are dissatisfied with the level of remuneration, recourse may be had to the court.
There are no proposals to impose limits on the fees that accountancy firms can claim.