Posted on: Monday 17th May, 2021
During these difficult trading times CFS have taken the opportunity to develop and improve our service offering to clients and to see how we can best support IP.s We invest heavily in terms of time and resources to ensure that we retain our position as the market leader in Director Redundancy Claims. As the number of enquires we are receiving is increasing we hope that this translates into increased instructions to IPs for liquidation services.
We would like to share with you the reasons that our partnership relationship offers a mutually beneficial platform for CFS and you to increase sales but to operate compliantly within our respective regulatory frameworks. We would also like to highlight the innovative changes we have made to our processes and the steps we have taken into forging stronger stakeholder relationships with the Financial Conduct Authority, the Redundancy Payments Service and the Insolvency Service.
We are FCA registered and are subject to the FCA General Principles and the Claims Management Conduct of Business Rules. We were closely scrutinised during the authorisation process and are subject to ongoing controls and reporting requirements.
We support the IP in ensuring that their marketing and services does not cross over into the regulated claims field and help to ensure that their activity complies with their own code of conduct set down by their reporting supervisory body.
We only ever submit claims to the RPS where we can evidence the validity of a claim through documentation such as books, bank statements, contracts etc. In turn we can share this information with the IP to support their RPS reporting obligations and other elements of their services. This allows the RP14 and RP14A to be submitted correctly and expediently.
We provide training and regular newsletters, particularly in relation to changes effected by legislation or case law.
Director Redundancy Payments can be utilised to meet SOA fees, often in circumstances where the business or director has insufficient funds to meet these costs. Payments can be made directly from our internal client accounts thus speeding up payment for services.
Introduction of the IP Portal. This portal gives the IP real time access to the claim progression for claims where the IP is the instructed liquidator. It enables the IP to identify whether the claim has been submitted, what outstanding documents are required and whether payments have been received. The portal is interactive, and this is mutually beneficial as the IP can upload documents that they have in their possession but also download documents to support their RPS reporting requirements. The IP has 24/7 real time updates on a 365-day basis. The IP portal will operate in conjunction with Director Portal:
Introduction of the Director Portal. This will give our clients real time access on a 24/7 365-day basis of identifying the progress of their claim. It will identify actions required by the director and outstanding documents to be returned which should remove any unnecessary delays in the claim process.
We have continued with our internal training and have had (virtual) training sessions with our retained specialist employment law barrister. We have introduced a monthly internal newsletter to keep staff up to date within our industry and associated industries. We have recently invested in a personal development program for all staff. This is a hugely exciting project and demonstrates that CFS recognise the importance of its personnel and are willing to invest in their future, to support CFS' future.
We have been working closely with the Financial Conduct Authority, Redundancy Payments Service and the Insolvency Service to tackle unauthorised activity in the directors redundancy field. Unfortunately, there seems to have been an increase in unauthorised businesses entering this market including accountants, outsourced insolvency support businesses and sadly some IPs. We know from our conversations with IPs that this is a concern for IPs too. Not only is it unlawful and a conflict in some circumstances, it also creates an unfair disadvantage to those operating within the rules. We have been informed by the IS and RPS that they are working with the FCA on a newsletter to provide clearer guidance and we hope that this publication is imminent. We will continue to report unauthorised activity to the FCA and through the IS portal.
We have been communicating with the FCA’s Unauthorised Business Department to ensure that unauthorised activity is correctly reported and recorded in order that the FCA may make the necessary investigations and take enforcement action where appropriate.
We have been communicating with the Insolvency Service to identify how CFS can best support them and the reporting supervisory bodies to disseminate information and education in terms of directors redundancy claims.
We have been working with the RPS in relation to legislative and case law changes and how these may affect the director’s redundancy claims process. For example, the Working Time (Coronavirus) (Amendment) Regulations 2020 allow employees to carry over unused holiday into the next two holiday years if they were unable to take holiday as a consequence of the COVID 19 pandemic. The RPS portal has been updated to reflect this and we have provided guidance to IPs as to how to process these claims (based on the information supplied by the RPS). We have produced several newsletters on this matter. The most recent Dear IP Newsletter Issue 126 makes specific reference to the RPS new procedures in relation to claiming carried over holiday pay. They have now simplified the process and will accept carried over holiday pays to a maximum of 20 days if this is supported by the IP. All claims submitted by CFS are verified by our experienced case management team and we would never ask an IP to support any element of a claim unless we are satisfied that we can substantiate the claims based on current legislation and case law. CFS have offered support and assistance to the RPS in formulating the changes to holiday and have recently received letter from the RPS thanking us for “our proactive approach in helping government to regulate the sector.”
CFS are here to support IPs and Directors to ensure that the Director receives the full directors redundancy pay that they are entitled to calculate accordance with current legislation and case law