Insolvency and the fight against fraud September 2022

The insolvency and restructuring profession plays an important, if not widely recognised, role in tackling fraud. However, in order for this important work to be effective in light of new emerging trends and the growth in the scale of the problem, it is vital that the framework for tackling fraud is fit for purpose and up to date.The proposals contained within this paper aim to truly close some of the loopholes currently exploited so easily by fraudsters. In particular, the report’s recommendations on the reform of the company dissolution process will considerably improve the speed at which fraudsters can be investigated and prosecuted, and reduce the costs to creditors and victims of pursuing unscrupulous directors. They will enable more culpable directors to be brought to book, more recoveries made to victims of fraud and creditors, and will provide a stronger deterrent for fraudsters going forward.