A member survey conducted by R3 in 2016 revealed that 83% of members thought that there would be a “negative impact” on how quickly insolvency procedures involving European work would be resolved, and 79% thought that there would be a negative impact on cost.
R3, the association of business recovery professionals, has spoken out against this and urged the UK to take steps to retain the benefits from both regulations. The trade body, as well as many others, has praised the “speed, clarity and predictability” that the EIR provided to cross-border work and how insolvency proceedings will be slower and costlier without it.
Until the government agrees on the country’s exit terms for leaving the EU, the fate of the financial sector cannot be certain, and the continuation of EU insolvency regulations not guaranteed.
A continuing state of uncertainty will make the UK look vulnerable, thus giving rival European cities ample opportunity to distract investors. Thankfully, the credit monitoring services offered by the Credit Protection Association can help bolster the country’s image. In fact, by scrutinising the quality of potential and existing customers through our services, the likelihood of insolvent debtors can be drastically reduced.