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Insolvency Law

Expert guidance on all aspects of corporate and personal insolvency

25 SEP 2012

IPs and bonds - a conflict of interest?

I am currently working on part two of my bonds exposition (See part one here: Tribe, John and Hunt, Stephen (2012) Insolvency bonds: history, policy and substance. Insolvency Intelligence, 25(3), pp. 37-45. ISSN (print) 0950-2645).

The following infromation has come to light - Is the following a conflict of interest? Surely an IPs duty is to get the cheapest deal for the estate, not offer a side deal to the agent of the company?

 See: http://www.willis.com/documents/services/Insolvency/Willis_Insolvency_Bonds.pdf

 “Farringdon Vouchers

A significant element of the profit made on the bond is awarded back to Insolvency Practitioners in the form of Farringdon Vouchers which can be redeemed against various courses with R3. This award is made in early January which allows firms to plan any course attendance for the year.”

Do readers have any thoughts on this issue? 

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