SNP calls for insolvency probe

The Scottish National Party’s spokesman on regulatory reform, MP Mike Weir, this week called for an investigation into the insolvency profession’s excessive compensation levels.

Weir has drawn attention to the issue in a series of parliamentary questions in recent weeks, for example around the case of failed Christmas hamper firm Farepak, which collapsed in October 2006 owing £37m.

Three years later, the settlement offered to the firm’s 119,000 savers amounted to 5p in the pound (£7.4m), while the fees for administrator BDO and its legal advisers could reach £3m, the MP said.

“The UK government must take a serious look at the workings of the insolvency industry which appears to be raking in a fortune at the expense of creditors,” said Weir.

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