R3 Eastern warns hard-pressed firms to avoid unregulated and unlicensed advisers

Frank Brumby, eastern region chairman of R3.

Frank Brumby, eastern region chairman of R3. - Credit: Archant

A growing number of unregulated and unlicensed advisers are targeting financially-distressed businesses, the regional regional brand on insolvency trade body R3 has warned.

But although they often claim to be able to eliminate all financial worries, and help people avoid their legal duties, following such advice can often end up making matters worse, says R3.

The organisation has now published a new guide, highlighting the importance securing sound and qualified financial.

Topics covered include what happens in a corporate insolvency and the individual options available to company directors, the aim beinig to help demystify the insolvency process as well as to protect company directors and their employees from unscrupulous operators.

Research carried out this month found that only one of the key East of England industry sectors monitored by R3 – pubs – has a decreasing number of businesses with a heightened insolvency risk, with the risk of insolvency having increased in retail, manufacturing, construction, technology and IT, restaurants and hotels.

R3 Eastern chairman Frank Brumby, a director at Isadore Goldman, said: “As our economy continues to throw up challenges in the region, it is absolutely crucial that business owners only seek advice from a qualified, regulated source if they are in financial difficulty.

“Following incorrect or incomplete advice from unlicensed advisers can easily lead to even greater problems arising. There is a real risk that taking the wrong path could even, however unwittingly, cause business owners and managers to be breaking the law.

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“Our free guide is designed to illustrate as clearly as possible the different options management teams have.”

The R3 guide, Unregulated Adviser Guidance for Businesses, can be found online at www.r3.org.uk .