Thursday’s Financial Times touched on an important aspect of administration advice: the risk of a conflict of interest, if you obtain insolvency advice from a firm that has provided consultancy services to you or a related entity in the past.
Harriet Agnew explains in her piece that in some instances, a large firm may provide consultancy and audit services, with concerns over the independence of their audits.
“The concern is that firms will throw investment behind more lucrative consulting work at the expense of audit,” she writes.
“Another worry is that firms apply less objectivity to outgoing audits because they would be concerned it could inhibit their chances of winning other business.”
Good administration advice should be independent and uninfluenced by other aspects of the company by which it is provided – that much should go without saying.
Our insolvency advice is drawn from many years of experience and industry expertise, and is based on the requirements of the law, and on what is best for our clients.
In this way, we aim to provide the best likelihood of successful corporate recovery, while complying with the necessary regulations in all of the advice we provide – without any conflict of interest.
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