193 financial services firms enter insolvency

193 financial services firms enter insolvency




Almost 200 financial services companies have been made insolvent over the past year.

Figures released by the Insolvency Service revealed that 193 financial services firms, excluding insurance and pension funding, were made insolvent between April 2015 and March 2016.

The most common cause of compulsory liquidation was non-surrender to the Insolvency Service, while failure to deal with tax affairs and a loss of customers were also significant factors.

Of the 193 firms, only two businesses were monetary intermediaries, an improvement on the seven that were made insolvent for the same period the previous year.

A further 61 businesses were engaged in holding company activities.

Meanwhile, eight were trusts, funds and other similar financial entities.

The remaining 122 were unspecified financial services institutions.

In August, research from Direct Line found that unpaid debts had caused nearly 7,000 businesses to enter liquidation in H1 2016.

Earlier this month, Bridging & Commercial’s sister publication Development Finance Today revealed that 672 construction firms were found to have become insolvent during the first quarter of 2016. 

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