Four takeaways from R3’s New Professionals Forum: London

19 May 2023

On the 4^th of May we welcomed over 60 new professionals to Wedlake Bell's London offices for a half-day forum packed with thought-provoking sessions from expert speakers. Afterwards, delegates were able to network with the speakers and each other on Wedlake Bell's fantastic rooftop terrace. Here are our four key takeaways from the event:

1)      High insolvency numbers are here to stay

In an illuminating presentation on the state of the economy, James Dowers from RSM UK highlighted that HMRC is taking a firmer stance on late payments on outstanding tax and the 'time to pay' tap has been firmly turned off.

Companies are also coming under pressure from banks that have found themselves exposed to unsecured loans through COVID support schemes and lenders are now making renewed efforts to recover their funds.

High interest rates are here to stay as inflation looks worryingly sticky and, as this makes it harder for firms to refinance debt as it comes up for renewal, James expects insolvency practitioners (IPs) will become increasingly busy this year.

2)      Treat Crypto with Caution

With a trio of speakers presenting on different aspects of crypto asset recovery, the delegates were treated to a wide range of perspectives and useful advice.

Kevin Hart from Asset Reality set out how an IP can identify, pursue, take custody of, and realise assets in an ideal scenario. The two following speakers provided examples from their practices of how in practice crypto asset realisation can be extremely challenging.

The UK courts have held that crypto currencies are legal property and as such under the Insolvency Act 1986 IPs have duty to identify, access, preserve, value and distribute them as they would any other asset. With nine significant insolvencies in the sector in 2022 up from an annual average of just one to two in previous years, it seems crypto currencies will play an important role in many of our New Professionals careers.

3)      As a New Professional, look to progress internally before switching firm

For our final session, specialist insolvency recruiters from Gambit Search spoke about different ways to structure your professional path in insolvency at the beginning of your career. They highlighted the different pathways available to New Professionals ranging from appointment taking IPs to insolvency project management.

The recruiters highlighted the importance of internal reviews for setting objectives and said that they should not be treated as box ticking exercises but rather should be a road map for your progression within a company.

They concluded by saying that you should always look to progress within your organisation before you think about moving and to be wary of the 'grass is always greener' effect.

4)      The R3 New Professionals Group is thriving

With a sold-out forum and a stunning venue, it was no surprise to see the delegates enjoying themselves in the May sunshine. Speaking to several attendees, the forum was their first R3 event and they all spoke about how valuable they found it.

Delegates made the most of the opportunity to build their networks across firms and between disciplines while soaking up the experience of the speakers. With such an engaged and dynamic group, the future of the profession certainly looks bright.