RCUK facilitate SOA fees for two different IP firms totalling £708,365 and £234,848 to date. Read the business case studies attached.
Over the last four years RCUK has developed a nationwide network of IP referrers from the largest UK wide firms to smaller practices. Over this time RCUK has developed the internal systems and client bank account management processes to meet FCA compliance requirements and also allow IP firms to secure insolvency jobs where neither the company nor the director are in a position to pay the costs of the liquidation. Historically for IPs this has meant simply walking away from these opportunities.
RCUK can qualify directors in regards to their eligibility to a redundancy award from the RPS and the maximum they are entitled to under the current legal framework. The redundancy funds are paid into a client account and RCUK obtain written authority from the director to pay the SOA fees on receipt. This allows the liquidation to be done contingently converting jobs which previously IPs would not have been able to progress.
It does not stop there though. RCUK can assist IPs market director redundancy awards to generate insolvency enquiries through a proven platform of online marketing. IP firms are not FCA authorised and cannot seek out director redundancy claim referrals directly, but they can remain exempt from FCA regulation if they work with a fully regulated company like RCUK. RCUK has a unique embeddable calculator which can be inserted into the IP’s website with little cost and by incorporating it with a proven online marketing strategy IPs can drive incremental enquiries and work.
It stands to reason that IPs are naturally cautious of the fact that it could be perceived that if their fees are reliant on a successful redundancy claim they could be accused of inflating or supporting redundancy claims through incorrect submissions of RP14s. It is undoubtedly a risk if the company you are working with are unregulated or flout that regulation.
RCUK, as the market leader with expected turnover set to exceed £2m has passed both an audit from the RPS and under previous MoJ regulation passed a full onsite audit. More recently RCUK submitted an ‘exemplary’ application to the FCA, has been awarded a full FCA license and passed a full client account audit by an external auditor firm approved by the FCA.
RCUK also has a unique way of working with the RPS following the audit which involves submitting all evidence to support a claim with the online and paper application forms sent to the RPS. The RPS therefore are not totally reliant on the IP and the RP14 forms. The submission of this evidence has led to a ‘fast tracking’ of RCUK claims by the RPS. The evidence sent to the RPS is also sent to the IP to confirm against books and records and allow the IP to meet its SIP2 regulations and accurately complete the RP14 forms.
RCUK would lose its FCA license and could not trade if fraudulent, inflated or vexatious claims are submitted to the RPS. Without a license there is no RCUK business.
RCUK has continued to develop its relations with the RPS and regularly refund incorrectly or duplicated payments made to client accounts back to them. To date this has amounted to over £30,000.
The key part of delivering a successful business collaboration with IP firms is the management and processes required to secure the SOA fees into individual client accounts and obtaining the correct authority from the director to release them to IPs. This has to be completed to FCA regulatory requirements.
To ensure compliance RCUK are subject to an annual client account audit by an external independent auditor. RCUK passed this audit in August 2020 with nothing to report to the FCA which meant the auditors were 94% satisfied that all FCA regulatory requirements had been met.
This involves the manner and timescales in which payments are made to clients and third parties and full client reconciliations are completed accurately on a daily basis.
Paying third parties on the instruction of the client is allowed by the FCA. Paying IP SOA fees on the instruction of the client is simply a case of paying the client’s own funds to a third party to cover a cost they would normally be paying directly themselves. It is the client’s choice and decision to agree to pay the SOA fee from their money in their client account.
With the impending impact of Covid on the economy set to bite as government support is slowly withdrawn ensuring you generate as many enquiries as possible and then secure as many of those jobs is really important. RCUK are already helping IP firms to do this and have been for some time. RCUK would like to work with you to do the same.
The two case studies below are for two top twenty firms by CVL volume and they show what IP fees have been facilitated by RCUK and the director’s redundancy awards.
The headline numbers are:
Case Study 1 – four year relationship - £708,365* of additional SOA fee income generated and facilitated by redundancy awards. Further estimated WIP – c. £150,000. This firm has undergone and passed a full regulatory audit in this time frame.
*Figures correct as of 05.10.20.
Case Study 2 – two year relationship - £234,848* of additional SOA fee income generated and facilitated by redundancy awards. Further estimated WIP – c. £50,000. This firm has undergone and passed a full regulatory audit in this time frame.
*Figures correct as of 05.10.20.
Interested in working more closely with RCUK?
Finding the right marketing strategy to generate insolvency enquiries particularly online is very difficult in a competitive market place such as insolvency. Differentiating your business from others when it is perceived by directors that you provide the same service is equally difficult. However, there is no doubt that director redundancy, potentially the only ‘good news’ for a director going into CVL, is a great hook to get a director to enquire with your firm. To do this properly it has to be done without breeching your own regulation or unwittingly complicated FCA regulation. This is where RCUK can help. RCUK have the experience and knowledge to help your firm grow exponentially by embracing director redundancy into your marketing strategy.
If you would like to know more about how RCUK work and could help grow your business please feel free to contact Gary Addison on 01625 462587 or email on [email protected]
Does accepting a new job offer before the date of redundancy prevent a director making a claim for redundancy to the RPS
If you are looking to close your limited company, you may have attempted to strike it off by submitting a DS01 form to Companies House. This process is also sometimes referred to as dissolving or company dissolution.
A Creditors’ Voluntary Liquidation (CVL) is an official procedure whereby a company’s assets are liquidated in order to pay creditors. It’s typically initiated by directors when their company becomes insolvent and there is no hope of business recovery.
May I take this opportunity to thank you and your team for all your professional help in securing for myself and my wife, redundancy pay. I would have no hesitation in recommending RCUK to assist them.Tom Harrison Managing Director of a construction company