If you’ve ever wondered why the same names crop up when banks or alternative lenders appoint an IP, you’ve met the world of insolvency panels. Panels can deliver speed and consistency, but they also create real tensions: independence (actual and perceived), cost control, and whether the panel model truly serves all stakeholders.
As someone who’s worked with lenders large and small for decades, my aim here isn’t to bash panels, it’s to show directors, creditors and advisers how to navigate them sensibly and protect outcomes.
What panels get right
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Speed in a crisis. Lenders pre-vet firms, so they can pick up the phone and deploy a team quickly when a cash crisis hits. That can preserve value, save jobs and avoid a fire sale.
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Consistency. Service standards and MI help lenders compare like with like, pushing practitioners to keep response times and reporting tight.
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Sector know‑how. Larger panel firms often field specialist teams (care, construction, retail), which can be invaluable on day one.
Where panels go wrong
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Perceived independence. Directors and unsecured creditors can fear ‘the bank’s IP’ is there solely to protect the chargeholder. In law, office‑holders owe duties to the company’s creditors as a whole, and must follow statute and the Rules, not a lender playbook. Ensuring that independence is seen as well as real matters.
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Fee pressure in the wrong place. Panels sometimes fix rates for ‘front‑end’ work but costs then rise later. Transparent, Rule‑compliant approval of remuneration under SIP 9 remains essential, whoever made the introduction.
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One-size-fits-all. The ‘panel way’ can crowd out creative restructuring where a lighter, bespoke approach could deliver more for the whole creditor body.
Independence and conflicts: what the framework says
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Office‑holders’ duties derive from the Insolvency Act 1986 and the Insolvency Rules 2016. No private panel term can dilute those statutory obligations.
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Regulation & oversight. The Insolvency Service coordinates how RPBs regulate IPs. Complaints about conduct can (and should) go through the official channels.
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Remuneration transparency. SIP 9 requires clear bases, narrative explanations of work done, and meaningful information to allow creditors to assess whether fees are reasonable. If you’re a creditor, read the basis of fees carefully and use your voting rights.
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External influence. Courts have repeatedly warned against funders or stakeholders exerting undue control over litigation or case strategy. While a different context, the principle in Davey v Money underscores the judiciary’s intolerance for third‑party control that compromises fairness.
Practical tips for directors (before the bank calls time)
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Know your numbers and duties. If creditor pressure is mounting, get early advice. Directors’ duties tilt towards creditors as insolvency approaches – don’t wait for a formal demand. (See Companies House/GOV.UK guidance on director responsibilities and company status checks.)
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Propose your own shortlist. If enforcement is likely, ask the lender to consider a joint shortlist including a non‑panel firm with the right sector expertise. You’re entitled to ask for independence and relevant experience.
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Ask for the letter of instruction. A reasonable lender should share the scope given to the appointee. It helps ensure there’s no misunderstanding about to whom the office‑holder owes duties (the estate, not the lender).
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Document everything. Keep board minutes and professional advice letters. Good records matter if decisions are scrutinised later.
Practical tips for creditors and advisers
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Engage early and vote. Read the proposals, challenge assumptions politely but firmly, and vote on basis of fees and strategy. SIP 9 exists for you – use it.
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Follow the money. Use Companies House to monitor filings and progress reports; set free alerts on cases you’re exposed to.
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Know the HMRC angle. HMRC’s position (VAT, PAYE/NIC, security deposits, joint and several notices) can influence routes and recoveries; check current HMRC guidance and manuals when modelling returns.
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Escalate concerns properly. If you believe conduct falls short, the Insolvency Service’s investigations and enforcement pages explain how to complain and what to expect.
When the entity is FCA‑regulated
If the business is regulated (consumer credit, investments, insurance), the FCA has issued specific expectations for IPs on protecting customers and client assets. Panel or not, get this wrong and the consequences are severe. FCA
What good looks like on a panel appointment
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Clear day‑one plan balancing preservation with transparency to all creditors.
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Open communications – not just lender updates but regular, plain‑English notes to employees, landlords and trade creditors.
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Fee discipline – a sensible budget, early approvals where required, and narrative reporting that ties work done to outcomes under SIP 9.
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Challenge culture – a willingness to explore CVA, pre‑pack, going‑concern sales or managed wind‑downs on their merits, not habit.
Takeaway checklist
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Independence first. Duties run to the estate and the creditor body, not to any single introducer.
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Read and vote on fees in line with SIP 9; ask for clarity where needed.
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Use public tools: monitor cases on Companies House and keep alerts on.
- Escalate concerns via the Insolvency Service complaints route if required.
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If regulated firm: check FCA guidance alongside insolvency law. FCA
- And if you need any further support: either use my insolvency copilot, VAi, or call me – 07813102024