Unified UK approach to corporate insolvency needed – R3 in Scotland
The Scottish Technical Committee (STC) of R3 in Scotland, the insolvency trade body, has called on the Scottish Parliament to reconsider the current devolved powers in respect of corporate insolvency, in its response to the Smith Commission’s “Have your say” consultation.
R3 is calling for corporate insolvency legislation to be drafted at a UK, rather than devolved, level. R3 says the current split between Westminster and Holyrood can result in a lack of consistency and extra costs for creditors and insolvency practitioners.
STC is comprised of IPs, solicitors, advocates and leading academics, and has provided technical support and advice on insolvency matters of particular Scottish interest to the UK and Scotland Governments.
Tim Cooper Chairman of R3 in Scotland says: “A unified approach to corporate insolvency makes legal and practical sense.
“Differing primary legislation between Scotland and England & Wales can lead to inconsistencies between the two jurisdictions. We believe aligning Scotland with the rest of the UK would reduce difficultly and uncertainty, while removing additional costs to creditors and the Scottish economy.
“Given the increasing importance in the modern world of achieving clarity and consistency of approach in the European Community and across the globe in general, Scotland should simplify the process by ensuring a level playing field exists in the UK.”
Tim Cooper continues, “Reviewing the current developed powers and re-examining the recommendations made by the Calman Commission would better serve the public interest and ensure creditors and the Scottish economy are no longer placed at a disadvantage.”
“R3 in Scotland believes that an appropriate insolvency framework should underpin the principles of a strong Scottish economy through efficient processes, job preservation and better regulation.”