THE LONDON GAZETTE & INSOLVENCY INFORMATION

Online Survey Of Insolvency Professionals Undertaken For TSO

Final Report January 2014

Dr. John Tribe

KPMG Principal Lecturer in Restructuring Kingston University Law School http://law.kingston.ac.uk/

David Purdy

Visiting Fellow Kingston University Small Business Research Centre http://business.kingston.ac.uk/sbrc

CONTENTS

Executive Summary...... 2 1. Introduction...... 5 2. Project Objectives...... 5 3. Background...... 6 4. Methodology...... 7 5. Analysis Of Data...... 8 6. Conclusions And Recommendations...... 37 Appendix #1: Statutory Provisions That Require The Gazetting Of Insolvency Information...... 44 Appendix #2: Note On Sampling & Small Populations...... 47 Appendix #3: CEBR/R3 Survey 2008...... 49 Appendix #4: Bibliography...... 52

See also: Summary Analysis Prepared For Survey Participants, Kingston Law School, April 2013 (A basic analysis of the online survey responses, and showing the questionnaire and response options) http://eprints.kingston.ac.uk/25682/

ACKNOWLEDGMENTS ABBREVIATIONS

The authors wish to register their gratitude to ACCA Association of Certified Chartered TSO, as the project sponsors, and to the survey Accountants participants. CVA Company Voluntary Arrangement CVL Creditors’ Voluntary Liquidation LIABILITY DISCLAIMER IA86 Insolvency Act 1986 ICAEW Institute of Chartered Accountants in Due care and attention has been paid to the England and Wales selection of the information contained herein, ICAI Institute of Chartered Accountants in and as such, is offered in good faith. Kingston Ireland University regrets, however, that neither the ICAS Institute of Chartered Accountants in university, the project sponsors (TSO), nor Scotland the co-authors, accept any liability for losses ILA Insolvency Lawyers’ Association or damages which could arise for those who IP Insolvency Practitioner choose to act upon the information contained IPA Insolvency Practitioners’ Association herein. Competent professional advice should IPUIS Insolvency Practitioner Unit of the be sought before reaching a final decision to Insolvency Service invest in any business opportunity. IR86 Insolvency Rules 1986 IVA Individual Voluntary Arrangement The Acrobat hyperlinks/URLs were functioning LG London Gazette at the time when the report was published. LSS Law Society of Scotland MVL Members’ Voluntary Liquidation COPYRIGHT R3 Association of Business Recovery Professionals (Rescue, Renewal, All Rights Reserved, Kingston University, 2013. Recovery) This report will be lodged with the Kingston RPB Recognised Professional Body University research repository at: http://eprints. SRA Solicitors Regulation Authority (Law kingston.ac.uk/ (traceable by searching for one Society) or more of the co-authors). TSO The Stationery Office

Kingston Law School - Final Report - TSO IP Gazette Survey 2014  EXECUTIVE SUMMARY Insolvency News online service (24%, 1 to 4 times a month). n Respondent profile - The online survey respondents are predominantly n Other key sources of insolvency Insolvency Practitioners (IPs, 57%), data - These included Creditsafe, Dear but also included Solicitors (17%) and Insolvency Practitioner (Insolvency support staff for IPs (16%). A substantial Service), Geoff Swire, Individual majority are located in England (86%). Insolvency Register (Insolvency Service), and, R3 (Association of This contrasts with a comparable online Business Recovery Professionals). survey undertaken in-house by TSO a few months earlier, whereby the TSO n Quality of insolvency data published respondents were predominantly in the Gazettes - Well over half of the support staff for IPs (66%), followed by respondents (61%) consider that the IPs (20%). quality is either ‘excellent’ or ‘very good’. n Usage of regional editions of the n Suggested improvements to the Gazette - The London edition recorded presentation and content of Gazette the widest readership (90%), followed by insolvency data - almost a quarter the Edinburgh (12%) and Belfast (5%) of respondents offer suggestions for editions. improvements (22%). These include: refinements to the online search n Print vs online usage - Respondents process, the availability of output in marginally favoured online usage only .CSV or Microsoft Excel formats, and, (45%) over dual paper and online usage compatibility with proprietary IP case (41%). management software. n Main information sought - The n Respondent expenditure on insolvency commonest requirements are winding- publications/services - Almost a third of up petitions (80%), followed by respondents indicate that their local office administration orders (67%) and expenditure is less than £1,000 annually bankruptcy notifications (64%). (31% of respondents). n Other information sought - Other n Use of the Gazettes for practice requirements included creditors’ development - Only 9% of the voluntary liquidations (CVLs) and respondents report using the Gazettes members’ voluntary liquidations for business development purposes. (MVLs). However, larger practices are twice as likely as the average to use the n Main reasons for advertising in the Gazettes for this purpose (18% of Gazettes - Administration orders respondents with an annual fee income of represented the greatest demand (62%), £25m or more). followed by bankruptcy notifications (56%) and winding-up petitions (56%). Examples of such use included: n Other reasons for advertising in the l “Identifying winding-up petitions” Gazettes - Other reasons included CVLs l “Monitoring insolvency activity in and MVLs. certain regions and where applicable establishing whether the accountants/ n Key sources of insolvency data - The lawyers are known to the firm” most widely-accessed source is the l “To analyse number of MVLs” Companies House web site (37% of l “To identify appointing parties (e.g. respondents, accessing daily or more administrations) and ascertain whether frequently), followed by the Gazettes our relationship with them needs (30%, 1 to 4 times a month), and the further development”

 Kingston Law School - Final Report - TSO IP Gazette Survey 2014 n Use of the Gazettes for competitive n Service standards of the Gazettes - tracking - 14% of the respondents Almost two-thirds of the respondents reported using the Gazettes for answering the question (63%) consider competitive tracking. Larger practices the service standards to be either were much more likely than the overall ‘excellent’ or ‘very good’. sample to use the Gazettes for this purpose (33% of respondents with an Respondent profile for online survey annual fee income of £25m or more). n Membership of recognized Examples included: professional bodies - The Insolvency Practitioners Association is the most l “Analysis of appointments/appointers” commonly cited body by respondents l “Awareness as to what other firms in (IPA, 43%), followed by the Institute of Belfast are obtaining appointments” Chartered Accountants in England & l “Collating numbers of appointments of Wales (ICAEW, 26%), and, The Law other firms” Society (18%). l “Monitoring Trust Deed numbers & Liquidation appointments” n Length of experience in the insolvency l “Review of MVL appointments” industry - Over half of the respondents l “To check on block transfers of (55%) report working in the sector for appointments” more than 20 years. l “To identify firms being appointed and to the business sectors” n Size of practice - Approximately a third of respondents (35%) work in a n Suggestions for other information/ ‘single-branch’ practice based in the notices which could usefully be UK. However, a similar proportion (33%) included in the Gazettes to help work for practices having multiple offices practices - 14% of the respondents offer located in the UK only, and 30% work for a range of suggestions, and the most multiple-office practices in the UK and/or commonly cited relates to The Law of internationally. Property Act Receivership. n Local branch staff size - 60% of the local Additional suggestions for other branches in which respondents worked information/notices included: have fewer than 25 staff.

l “A searchable database of CCJs” n Practice fee income - Nearly a half of [County Court Judgments] respondents (47%) report working for l “A searchable list of registered deaths practices with an annual income of less as some of our bankruptcy estates than £5 million (for all offices). realise pension policies” l “Better information on the nature of the n Age of respondents - Just over a half of insolvent company’s business” [noting respondents (51%) are 46 years of age or that Articles of Association are often older. general, out of date, or misleading.] l “Consistency with trading addresses n Gender of respondents - Male on all adverts” respondents outnumber female l “CVA/IVA if legislation were changed” respondents by approximately two to one (Company Voluntary Arrangements, (66% male to 32% female). Individual Voluntary Arrangements) l “Fixed charge appointments” In-house surveys l “Geographic analysis of insolvency appointments and analysis by sector” n Composition of surveyed samples l “LPA Receiverships appointment detail - the target audience for survey would be useful in so far as it relates to invitations needs to be kept in mind when corporate borrowers” interpreting survey responses, as does l “Proceeds of Crime Act receivership” the final sample composition and likely

Kingston Law School - Final Report - TSO IP Gazette Survey 2014  bias. Questionnaires should solicit key activity might provide a further insight into information which may help to gauge the regional variations. extent of any bias, such as respondent key function, age, gender, physical location, staff size, highest qualification and professional affiliation. n Generalising findings to a larger population - in the absence of a random sample, generalising is problematic (see Appendix 2). But with relatively small populations, random selection can be impractical. Comparisons with other surveys may be helpful, but bias - especially self-selection bias - is an attendant risk.

Further research n Improving current insolvency data - the Gazette may offer a useful opportunity to improve upon the current insolvency data, requiring an analysis for each edition falling within a given time frame. The adoption of an automated process, using data held in a standardised format, may make this a relatively simple and straightforward task. n Early awareness of insolvent debtors amongst the business community - a survey of UK businesses, enquiring into the predominant channels by which they first learn about insolvent debtors, could help to clarify the role of the Gazette in assisting trade creditors. The sample might be sufficiently large to ascertain whether there are any particular issues for consideration in terms of one or more of: small and/or medium-sized enterprises (SMEs), broad industry sectors, and, the regions. n Profiling the IP sector - there may be some scope for analysing ‘mandatory’ membership data, for example, as gathered by an IP body such as R3, to provide a more comprehensive and reliable profile of the sector. n Regular usage of regional editions of the Gazettes - our sample contained only a small number of respondents who were based outside England, but a further survey and/or analysis of Official Receiver

 Kingston Law School - Final Report - TSO IP Gazette Survey 2014 1. INTRODUCTION be brought to the attention of the public is hardly allayed by advertising it in The London Gazette was first published as the Gazette. Nevertheless, the rules The Oxford Gazette in 1665. It is Great Britain’s require advertisement unless the court oldest continuously-published newspaper and otherwise directs. Thus it is for the it has a long history of publishing insolvency- company to show sufficient reason to related information. depart from the normal practice.” 

This survey was commissioned in 2012 by In answering this central question, the following TSO - publishers of The Gazette series - to areas, inter alia, would be investigated: investigate IP use of insolvency information in their publications. 1. Whether the speed of publication makes The London Gazette useful as an early Our analysis relies heavily upon an online indicator of insolvency levels (in advance survey undertaken by Kingston Law School of the official statistics).The London during February-March 2012, as a result of Gazette is available immediately whilst e-mailing invitations to approximately 2,950 the official data can be up to four months named contacts, predominantly members behind. of the Association of Business Recovery Professionals (R3). The sample base is 169 2. Whether or not from the point of view of respondents who completed the survey (5.7% insolvency professionals The London of the target audience). Gazette does a “good job”.

This analysis is complemented by an earlier 3. From the point of view of insolvency report - Summary Analysis Prepared For professionals how The London Gazette Survey Participants, April 2013 - which contains could improve. a basic analysis of the survey responses, and also the questionnaire and response option 4. What the profession wants from The wording, and may be downloaded from: http:// London Gazette. eprints.kingston.ac.uk/25682/ 5. The use of The London Gazette by IPs for 2. PROJECT OBJECTIVES business development purposes.

The research aimed to investigate how 6. The use of The London Gazette by IPs for practitioners use The London Gazette (and competitive tracking purposes. regional counterparts) and the insolvency information contained within its pages and on 7. Whether there are specific areas of the website. It arises from Mr Justice Morritt’s insolvency (corporate in particular) to contention: which value/effectiveness could be added through Gazetting – Law of Property Act “I consider that the efficacy of an Receivership for example. advertisement in the London Gazette has been exaggerated by both sides. 8. Whether access to London Gazette data No doubt it alerts the company’s has stimulated niche, value generating bankers so that an order under sec. service industries (e.g. services which 127 of the Insolvency Act may be consolidate information on dividends). required in order that the company may continue to trade. But I do not think that the Gazette is so widely read that an advertisement would alert ordinary trade creditors, who  Re Normandy Marketing Ltd [1993] B.C.C. 879. There has would not discover the existence of been positive judicial discussion of The London Gazette. In the petition by other means anyway. Life Enterprises Ltd v The Commissioners for Her Majesty’s By the same token, the Secretary Revenue and Customs [2009] UKFTT 340 (TC) Judge John Brown noted that, “Further, it became clear in reply to of State’s concern that a petition later questions that Mr Mote did not understand the presented in the public interest should importance of the Gazette entry.” (authors’ emphasis)

Kingston Law School - Final Report - TSO IP Gazette Survey 2014 

A Nineteenth Century Notice of Conformity in The London Gazette

9. Whether there is evidence that creditors re-use of the data by others.”  findThe London Gazette an effective way to find out about events. Historical insolvency information can be traced at least to the nineteenth century. For example, 10. What are the benefits and disadvantages information regarding certificates of conformity of a London Gazette type service as were published as early as 1845  (an example compared with a Companies House type from that year is shown above ). register service or an insolvency register type service. Do these various registers In modern practice there are a number of and information providers fit together? Is specific provisions within the Insolvency Act one better than the other? 1986 (IA86) and Insolvency Rules 1986 (IR86) that make reference to The London Gazette. 11. The research would also investigate Throughout the statute and rules The London potential ideas and areas for expansion Gazette is referred to as “The Gazette” . regarding how The London Gazette could The statute and rules contains a number of extend its service in non-mandatory provisions that stipulate when The London directions, for example uploading other Gazette must be used in relation to several documents from which the mandatory corporate and personal insolvency advertising notice would be automatically extracted and the balance of the information displayed online and the interested parties  http://www.london-gazette.co.uk/insolvency e-mailed/written to.  The certificate of conformity was first introduced during the reign of Queen Anne. It continued to play a central role in 3. BACKGROUND bankruptcy discharge pursuant to a number of subsequent statutes. The certificate of conformity was a statement that As noted above, The London Gazette was first the bankrupt had satisfied all relevant legal requirements. published as The Oxford Gazette in November The certificate of conformity discharged the bankrupt and 1665 . It is Great Britain’s oldest continuously- any of their after-acquired property from any debts that had published newspaper and it has a long history been provable in his or her bankruptcy. Creditors, if they of publishing insolvency-related information. so desired, would sign the certificate. If a specified majority had signed, and the Lord Chancellor then confirmed the certificate, the bankrupt would be discharged from their The London Gazette’s stated aim is to bankruptcy liabilities. “disseminate … knowledge of insolvency events  Source: The London Gazette, issue 20430, 7 January 1845, to those who need to know; and facilitate… the printed page p60, online search page 24 of 32  s.251 of the IA86 stipulates that “The Gazette” means— (a) as respects companies registered in England and Wales,  Handover, P. M., A History of the London Gazette: 1665- the London Gazette; (b) as respects companies registered in 1965. HMSO; London. 1965 Scotland, the Edinburgh Gazette.”

 Kingston Law School - Final Report - TSO IP Gazette Survey 2014 issues.  respondent age, gender, practice size - so as to permit further insight via cross- 4. METHODOLOGY tabulated analyses. n Online survey - Qualtrics survey software n Survey periods - 28th February to 14th was used to manage the data collection March 2012 (predominantly members of and analysis , gathered via personally- the Association of Business Recovery addressed e-mailed invitations. Professionals), and 15th to 30th March 2012 (predominantly members of the n Target audience - 2,953 named Insolvency Law Association). contacts, predominantly members of the Association of Business n Response rates - a total of 251 Recovery Professionals (R3) , respondents started the online followed by a number of members of questionnaire. Of these, the Qualtrics Insolvency Lawyers’ Association 10, software indicated that 169 of these had and supplemented by a list of e-mail completed the questionnaire (excluding addresses received from TSO (part of the deletion of responses from 2 survey the respondent sample for the ‘Gazette participants for whom we were unable to Insolvency Practitioner Survey’ conducted resolve staff size queries). in October-November 2011), plus a number of Kingston Law School contacts. The base for our analysis is the 169 The TSO list was also edited to remove responses, 5.7% of the mailed audience ‘no further contact’ respondents from the (2,953 addressees). TSO survey. n Follow-up interviews - Four telephone Source No. Addressees interviews were conducted on the 28th March 2013: one interviewee was R3 2,612 amongst the 169 respondents in the ILA 237 sample who had completed the online TSO 97 survey. He/she had also requested a copy Kingston Law 7 of the summary report (below). The other School contacts interviewees were not amongst the 169 respondents, but were previously known TOTAL 2,953 to Kingston Law School. n Questionnaire design & piloting The line of questioning explored - the design progressed via 4 off draft further the issues raised by the online versions, with draft versions supplied questionnaire. to the client (TSO) and also a panel of IPs for feedback. For comparison, the A fifth interviewee, an IP, was used survey included three questions which to solicit views on several issues by were very similar to those used in a telephone early December 2013 (and previous TSO in-house survey, ‘Gazette who had not submitted a response to the Insolvency Practitioner Survey’ (regarding: online survey). respondent role, Gazette service standards, and the length of respondent Overall, the follow-up interviewees experience in the insolvency industry). comprised three IPs, a solicitor and an advertising agent serving the IP market. The questionnaire was designed to include key variables - such as n Distribution of summary report to participants - an Acrobat version of the  See Appendix #1 (Statutory Provisions that require the summary report 11 was e-mailed, on the Gazetting of insolvency information) for a discussion of the 24th May 2013, to those respondents who various provisions.  http://www.qualtrics.com/  http://www.r3.org.uk 10 http://www.ilauk.org 11 http://eprints.kingston.ac.uk/25682/

Kingston Law School - Final Report - TSO IP Gazette Survey 2014  had requested a copy and also completed they may be working towards one. In addition the survey (86). to the support team caveat it should also be noted that the published figures on the BIS n Response analysis - the cross-tabulated website includes a number of non UK resident analyses were generated by the Qualtrics IPs. Again these IPs have licences but they do software, and exported as Microsoft Excel not take appointments. tables for further adaptation. With these caveats in place it can be stated that A set of cross-tabulated analyses for there are approximately 850 IPs who actually each of the following key variables was take appointments. The best source of data to produced: determine at any one time exactly how many IPs are appointment-taking (as opposed to Q1 Respondent Primary Role working in support of those IPs who do as either Q21 Respondent Experience (number support team or a qualified IP) is the enabling of years working in the insolvency bond data which can be obtained from the industry) various insurers who provide bond cover 12. Q22 Respondent Practice Size (small- The exact number of bond covered IPs is not large) publicly available. Q23 Respondent Practice Staff Size (number of staff) In terms of background, IPs are typically Q24 Respondent Practice Fee Income accountants who have gone on to qualify as IPs Q25 Respondent Age by taking an additional insolvency qualification. Q26 Respondent Gender There are exemptions to this. A small number of lawyers are dual qualified as IPs. There are Tables displaying what were considered also a number of IPs currently in practice who to be interesting similarities or differences were ‘grandfathered’ in to the current profession are shown in the following section, with following the introduction of the Insolvency Act selected response analyses plotted in 1986, i.e. their experience was sufficient to graphical form. enable qualification, as at the relevant time they had not, say, and passed the Joint Insolvency Comments supplied by respondents and Examination. interviewees are reproduced verbatim, apart from a small number of minor typographical All IPs are required to be a member of an RPB corrections (primarily in the comments received (Recognised Professional Body). IPs exist as online). Also, non-responses to questions are a self-regulated profession. A large proportion typically low, and are generally excluded from of IPs are also members of the main trade the following figures. Finally, the youngest age body, R3. band (18-25 years’ old) has been excluded from the age-related figures, because it includes The intention of this survey was to reach as only two respondents, but their responses have broad a population of IPs as possible in terms been included where the full age spectrum of their typical characteristics (age, gender, would apply. experience, membership of professional bodies, etc.). We wished to gauge the opinion 5. ANALYSIS OF DATA of a broad range of IPs regarding their views of the LG and its insolvency use. We did not want Background to IPs in the UK to artificially restrict the target audience and those who were sent the original survey were There are around 1900 IPs practising in the not picked on the basis of any characteristic United Kingdom. These IPs are qualified to take other than that of being an IP or someone appointments in the UK, but not all do. Only work works for an IP, whether in the formative a proportion of this figure take appointments. stages of training or otherwise. Nonetheless, These appointment-taking IPs are supported by teams of support staff, who in some case are 12 On bonds see further: Tribe, J. & Hunt, S. (2012) qualified but they do not take appointments. In Insolvency bonds: history, policy and substance. Insolvency Intelligence, 25(3), pp. 37-45. See also: Tribe, J & Hunt, other cases these support team members do S. Insolvency Bonds: Practice and Reform (forthcoming) not hold a relevant insolvency qualification, but Insolvency Intelligence

 Kingston Law School - Final Report - TSO IP Gazette Survey 2014 the sample is prone to self-selection. online survey a few months prior to the Kingston Law School survey, and selected comparisons Caveats have been included in our analysis.

The target population is relatively small - for The data collection period for the TSO online example, approximately two thousand in survey commenced on the 20th October 2011, comparison with several million businesses and closed on the 4th November 2011. Also, in the UK - which would usefully reduce the the invited audience of TSO contacts was sample size necessary to achieve a given offered the opportunity of winning an iPad as accuracy, assuming a random selection (see an incentive to participate, noted on the opening also Appendix #2: Note On Sampling & Small page of the online questionnaire: Populations). “The Gazette is continually seeking However, with arguably limited scope for ways to improve service levels and will compiling a sufficiently large and suitably be embarking on a major investment random sample - for example, after allowing programme. To maximize the benefits of for low invitation:acceptance response rates this investment, we would really like to - sample recruitment in this case relied know more about advertisers, what they upon voluntary participation. The sample value, and how they perceive and use the composition is therefore subject to the risk Gazette.” of bias from self-selection, and is a non- probability or non-random sample. “To say thank you for your input, we are offering respondents entry into a prize Accordingly, this limits the scope for generalising draw to win a 16GB Apple iPad®*. To the findings to a wider population, such as all enter, please complete this survey and UK insolvency professionals. leave us your contact details by the 4th November 2011.” Also, the respondents derive from at least three distinct groups, as determined by their primary The TSO data analysed here was downloaded role, namely: from their survey account in February 2012, and comprises a total of 222 responses (the n IPs (57% of the usable sample where original dataset comprised 223 responses, but n=169 overall) we deleted one set for which the respondent’s main role/function was not given). n Administrative support staff to IPs (16%), and, Comparison with CEBR Survey of R3 Members n Solicitors (17%) A previous survey of IPs in the UK was Consequently these groups are relatively small published in 2008 (The value of the insolvency and their response values will be accompanied industry, CEBR, 2008), which used a similar by appreciable uncertainties. survey methodology to the Kingston study, i.e., via an invitation to participate, sent to R3 Nonetheless, the analyses and findings as members by e-mail. presented, with reference to the key variables, might be considered as indicative, rather than CEBR reported that they received a total of 169 definitive. Thus the hope is that they will inform responses, with 109 classifying themselves both commercial and academic interests, and as IPs. The aim of the CEBR/R3 survey was will also stimulate further debate and research. to assess the economic impact of the sector, Moreover, they should provide a useful basis but the findings contained some interesting for comparison with subsequent studies which similarities (see Appendix #3). replicate one or more parts of our survey. Respondents’ Primary Role Comparison with TSO Online Survey Figure 1 indicates that the ‘Kingston’ and The TSO conducted an internally-managed TSO survey samples are each dominated by

Kingston Law School - Final Report - TSO IP Gazette Survey 2014  Fig 1 - Comparison of Kingston Law School & TSO Surveys: Respondent Primary Role/Main Function (Q1)

66% 57%

20% 70% 60%

16% 50% Insolvency Practitioner (IP) 40% Proportion 17% 7% of 30% IP Support Sample 1% 20% Solicitor 10% 0% 6% Solicitor Support 9% 0%

Other TSO Survey (n=222) Kingston Survey Kingston Law School Online Survey: Feb-Mar 2012 (n=169) TSO Online Survey: Oct-Nov 2011

Fig 2 - Comparison of Kingston Law School & TSO Surveys: Respondents' Length of Time Working in Insolvency Industry (Q21) By Primary Role (Insolvency Practitioners & IP Support, Q1)

69%

41% 70% 60% 33% 55% 50% Proportion 40% 23% of 30% Sub-sample 39% 30% (Q1 Role) 15% 8% 20% 10% 14% 18% IP Support (Kingston, 27) 0%

IP (Kingston, 97) 7% More than 20 IP Support (TSO, 146) 11 to 20 years years 6 to 10 years IP (TSO, 44) 2 to 5 years Less than 2 years

10 Kingston Law School - Final Report - TSO IP Gazette Survey 2014 Fig 3 - Respondents' Location of Office/Usual Workplace (Q2) By Respondent Primary Role (Q1)

97% 94% 96%

86% 79% 100% 90% 80% 70% 60% Proportion 50% of Sample/ 40% Sub-sample 30% (Q1 Role) 7% 3% 20% UK - England 10% 4% 7% 6% 4% 0% UK - Northern Ireland 5% UK - Scotland 2% Other (16) UK - Wales Solicitor 3% IP Support (29) Outside UK Insolvency (27) ALL Practitioner (n=169) (97)

a different group of respondents. The predominant groups in each of the respective surveys are shown in different The Kingston Law School survey is dominated colours in Figure 2, to emphasise the respective by IPs (57% of the respective sample), and the age profiles within the two samples. TSO survey by support staff to IPs (66%). Also, the Kingston support staff to IPs are The TSO sample composition may be influenced biased towards a longer rather than shorter by the role of the person who typically places length of time in the insolvency business, advertisements in the Gazette, a task more in contrast to their counterparts in the TSO likely to be delegated, especially in larger survey. practices. And if so, this would contrast with the Kingston target audience - predominantly Location of office/usual workplace members of the Association of Business Recovery Professionals (R3) - where full The vast bulk of Kingston respondents are members are required to be regulated by an based in England (86%, Figure 3), with some RPB. dispersion of IPs based in Scotland and Northern Ireland. Length of experience in the insolvency industry One of the IPs in the follow-up interviews noted: Figure 2 indicates that the length of experience in the insolvency industry is markedly different “Nominally I sit in central London but for the two predominant groups: a sizeable the role obviously requires me to move majority of Kingston’s IPs report a period of over all around the country and review files 20 years (69%), whereas the TSO support wherever... I have a separate role as staff to IPs have a shorter period, with a Leader of [deleted] which is oversight comparable majority reporting between 2 and for other functions and other practices 10 years’ experience (39% + 30% = 69%). around the world, so Ireland, Channel

Kingston Law School - Final Report - TSO IP Gazette Survey 2014 11 Fig 4 - Regular Use Of Regional Gazettes (Q3) By Primary Role (Q1)

97% 88% 96% 100%

87% 90% 80%

60% Proportion of Sample/ 40% Sub-sample (Q1 Role) 6% 20% 15% 3% 6% 14% 0%

12% 4% The London Gazette Other (16) 7% The Edinburgh Gazette Solicitor (29) 5% IP Support The Belfast Gazette Insolvency (27) ALL (n=169) Practitioner (97)

Fig 5 - Team Use Of Printed/Online Gazettes (Q4) By Primary Role (Q1)

55% 60% 52% 50% 50% 31% 51% 35% 41% 40% Proportion 41% 45% 28% 30% of Sample/ Sub-sample 20% (Q1 Role) 10% 14% 6% 0% 7% 12% Both online and paper copy versions Other (16) 11% Online version only Solicitor (29) IP Support Paper copy version only Insolvency (27) ALL (n=169) Practitioner (97)

12 Kingston Law School - Final Report - TSO IP Gazette Survey 2014 Fig 6 - Team Use Of Printed/Online Gazettes (Q4) By Practice Fee Income (All Branches, Q24)

54% 52% 60%

59% 50% 36% 47% 38% 40% Proportion 41% 25% 33% 45% 30% of Sample/ Sub-sample 20% (Q24 Fees)

8% 10% 12% 14% 0%

11% Both online and paper copy versions =>£25m (39) 11% Online version only £5m-24.9m £1m-4.9m (33) Paper copy version only T/O <£1 (36) ALL (n=169) million p.a. (44)

Islands and other countries, I have Use of printed/online Gazettes done Germany and so on around the world.” (Respondent Pine) Respondents marginally favoured exclusive online usage (45%, Figure 5) over dual paper Regular use of the regional Gazettes and online versions (41%). Exclusive use of the printed versions is limited (11%). The London edition recorded the widest readership (90%), followed by the Edinburgh Solicitors are those least inclined to rely (12%) and Belfast (5%) editions (Figure 4). exclusively on the online version (28%, vs. 51% of IPs). A minor proportion of IPs and their staff also regularly use The Edinburgh Gazette (around Respondents, overall, are more likely to use 15%). But an IP interviewee explained: both the online and printed versions in the larger income practices (rising from 25% for the “I always use The London Gazette smallest, to 54% for the largest, Figure 6). because I’m only licensed as an insolvency practitioner to practise in Our solicitor interviewee said that his preference England and Wales.” (Respondent for any given format depended upon the Oak) circumstances:

Solicitors’ low usage of the regional editions “My primary use is to place beyond The London Gazette (97%) - e.g., The advertisements primarily for winding- Edinburgh Gazette (3%) - corresponds closely up petitions, but also reuse of with a strong bias towards England-based company names. I will advertise solicitors in the sample (Figure 3). a piece of legal information that I want to be published to the world in general, in accordance with the insolvency legislation, and then as

Kingston Law School - Final Report - TSO IP Gazette Survey 2014 13 Fig 7 - Reasons For Seeking Information Via The Gazettes (Q5) By Primary Role (Q1)

97% 88%

78% 80% 74% 74% 63% 78% 66% 100% 66% 66% 90% 67% 50% 62% 80% 64% 70% 60% Proportion 50% of Sample/ Sub-sample 41% 40% (Q1 Role) Winding-up petitions 36% 30% Administration orders 20% Bankruptcy 30% 10% Company Voluntary Arrangements 0% 26% Administrative receivership Other (16) Individual Voluntary Arrangements Solicitor Other IP Support (29) IP (97) (27) ALL (n=169)

part of that advert, I will request the access to the Internet, so I can always hard copy be sent to me so I have access the Gazette online. Another paper evidence that the advertisement reason is because when I file notices was published, and so the world in in the Gazette, they send me by e- general has been told about it and mail a PDF of the notice which has I will always receive the hard copy gone in the Gazette, which I can print of The London Gazette. But if I am off and add to the file to show what searching for something in relation is my statutory duty to advertise.” to a company that I’m interested in, (Respondent Oak) which may have undergone a process that causes a notice to be published, In response to a question about the checking then I will search the online London of administration orders, another IP mentions a Gazette. I will go to the insolvency planned transition to a paperless operation: section, look under the companies, put in the name of the company, and “Yes, and that will apply across all see what comes up. [I can] see if there those procedures, so for each one of has been a section 98 meeting or them I will be looking for the proper some sort of other indication, perhaps use of the Gazette on files. If I can’t administration or whatever, or just find it, I will then search on line, which liquidation generally, or a winding-up is where I’m coming from when I’m order that relates to that company, saying we use a mixture of paper and and I will get my information that way.” electronic versions, though obviously (Respondent Beech) within the next 18 months to 2 years we are going to try to move towards An IP interviewee said: paperless in any event. In which case, we won’t actually have paper copies “I don’t take the hard copy because of an awful lot more of the documents. I’m usually sitting at my desk with There might be scanned copies if there

14 Kingston Law School - Final Report - TSO IP Gazette Survey 2014 Fig 8 - Reasons For Advertising Via The Gazettes (Q7) By Primary Role (Q1)

97%

74% 71% 100% 63% 38% 90% 62% 65% 56% 38% 80% 56% 48% 70% 56% 63% 45% 60% Proportion 50% of Sample/ Sub-sample 39% 40% (Q1 Role) Administration Orders 36% 30% Bankruptcy 20% Winding-up Petitions 29% 10% Other 0% 23% Company Voluntary Arrangements Other (16) Administrative Receivership Solicitor Individual Voluntary Arrangements IP Support (29) IP (97) (27) ALL (n=169)

is something that we can’t download Other reasons for advertising in the Gazettes directly, so if there is a document that included CVLs and MVLs. we need to convert, then obviously we would need to scan it, but in As with information sought, there is a similar most cases we would download an overwhelming requirement amongst solicitors electronic version. (Respondent Pine) for placing notices about winding-up petitions (97%), but with appreciably less demand for Reasons for seeking information via The administration orders and bankruptcy notices Gazettes (both 38%).

The greatest demand relates to winding- There is a noticeable increase in the likelihood up petitions (80%, Figure 7), followed by of larger practices to advertise administrative administration orders (67%) and bankruptcy receiverships via the Gazettes, rising from 14% notifications (64%). of the smallest practices, to 46% for those with an annual fee income of £25 million or above Other information sought includes CVLs and (Figure 9). This presumably reflects a tendency MVLs. by the bank panels to appoint larger practices for debts in excess of £200,000, as reported by There is an overwhelming requirement amongst the Office of Fair Trading in 201013 . solicitors for information about winding-up petitions (97%). 13 “Most banks operate ‘panels’ to select IP firms for insolvency cases where indebtedness to the bank exceeds Reasons for advertising via The Gazettes £200,000. While panels may pose a barrier to smaller firms trying to expand to handle larger insolvencies, our data Administration orders represent main reasons suggests this it is not insurmountable. Approximately 25 for advertising in the Gazettes (62%, Figure different firms are on one or more bank panels, representing 40 per cent of IPs. Additionally, 30 per cent of insolvencies 8), followed by bankruptcy notifications (56%) where the bank is owed more than £200,000 are dealt with by and winding-up petitions (56%). a nonpanel firm...” (OFT, 2010)

Kingston Law School - Final Report - TSO IP Gazette Survey 2014 15 Fig 9 - Reasons For Advertising Via The Gazettes (Q7) By Practice Fee Income (All Branches, Q24)

78% 67% 55% 69%

62% 57% 61% 80%

56% 70% 56% 60% 46% 50% Proportion of Sample/ 39% 40% 33% Sub-sample 36% 30% (Q24 Fees) Administration Orders 25% 20% Bankruptcy 29% 10% Winding-up Petitions 14% 0% Other 23% Company Voluntary Arrangements =>£25m Administrative Receivership £5m- (39) Individual Voluntary Arrangements £1m-4.9m 24.9m (33) T/O <£1 (36) ALL million p.a. (n=169) (44)

Regarding the winding-up process, the intention and notices of appointment solicitor interviewee noted: of administrators. The insolvency practitioners, in my experience, tend “If I’m instigating the winding-up and to do all the filings from thereon acting for a petitioner, then I will be in once they are appointed, and advertising the petition and presenting obviously because, as you know, the a notice which goes in the prescribed administration process doesn’t require form which goes in the relevant the petitioner to advertise. And so I section. I will transmit that in paper don’t think I’ve ever filed anything in copy with a cheque to The Stationery relation to administration, other than Office and say: please publish this in relation to [s.] 216 which is very advert in the next printed edition of different.” (Respondent Beech) The London Gazette and please also send me a copy of the edition that is IP - “I file in the Gazette for published. That’s when I’m instigating administrations orders. I’ve got a the process and I’m responding to a statutory duty to do that. I used the requirement in the insolvency rules to Gazette recently online, to check to advertise a petition, because I’m acting see if a company that I was potentially for the petitioner.” (Respondent Beech) going to be appointed liquidator over had gone into administration. I couldn’t For administrations (followed by an IP’s find the administration order, but what response): I did was go onto Companies House, because most practitioners when Solicitor - “I don’t tend to do anything they file in the Gazette they will file in with administrations on a proactive Companies House at the same time, side, because once the administration so you can use the two in tandem with has been dealt with at court which I each other. So if you can’t find it in the would deal with, we’ve got notices of Gazette you can check on Companies

16 Kingston Law School - Final Report - TSO IP Gazette Survey 2014 Fig 10 - Frequency Of Accessing Insolvency Data Via The Gazettes (Q9), By Primary Role (Q1)

38%

33% 40% 24% 26% 30% 24% 30% 35% 21% 30% 21% 25% Proportion 21% 14% 20% of Sample/ Sub-sample 15% (Q1 Role) 11% Once a month or less frequently 14% 10% 1 to 4 times a month 3% 5% 0% 2 to 6 times a week 4% 7% Daily or more frequently 3% Other (16) 6% Non-Response Solicitor IP Support (29) Never/Not applicable IP (97) (27) ALL (n=169)

House... It’s easier to use Companies Company voluntary arrangements (CVAs): House, because you have to search [by general expression] in the Gazette, Solicitor - “I wouldn’t necessarily whereas if you do a search on a name know I was looking for a CVA. I’d in Companies House, then you have be interested in a company perhaps a filing list. All the documents have because of a debtor, or we thought it been filed there[are] at your fingertips. was going bust in some way shape I sometimes find it quite difficult to or form. And so I would do a generic search through the Gazette, especially enquiry through the website on the if you don’t know the exact name of corporate insolvency section, and the company it can be quite difficult, or I would just put in the name of the if you don’t know the date or anything company and see what came out. like that.“ (Respondent Oak) And so it wouldn’t be a specific CVA enquiry, I’d just be interested to see And bankruptcy: if there was any insolvency process affecting that particular corporate Solicitor - “No, never filed a form on entity.” (Respondent Beech) that. I’ve never tried to advertise a petition through the Gazette as a Company voluntary liquidations (CVLs): way of bringing it to the attention of the debtor, that’s just never arisen. IP - “In a CVL where you have to Obviously the bankruptcy process distribute to creditors there are 6 where I’m almost always acting for the notices that go in the Gazette. The petitioner doesn’t require the petitioner initial notice is the pre-appointment to advertise, and so I’ve never convening the section 98 meeting. submitted anything to The London There are two notices that get filed Gazette in respect of a bankruptcy.” straight away, within 5 business days, (Respondent Beech) they are the resolutions that have

Kingston Law School - Final Report - TSO IP Gazette Survey 2014 17 been passed upon the appointment on one account and a … balance on of the liquidator, so that’s 3. Then another account, technically I believe you ... [publish a] notice to prove in they are not supposed to offset it. So the Gazette, I think it’s 21 days, but I if they’ve frozen the bank account on tend to give creditors about 6 weeks a certain date, having had notice of a because I work for the creditors. section 98 meeting, so you are able to So you issue notice to prove in the get the money back in and there isn’t Gazette ... to all creditors as well, a preference in favour of the bank, that’s 45, then you have a final so it is an important facility for us. meeting gazetted. So there are 5 (Respondent Oak) meetings ... On the bankruptcy you would do the same. You would issue And finally,administrative receiverships: notice to prove which goes into the Gazette, it gives the creditors time to Solicitor - “... it would just be me have a look. What is really important making a general enquiry and about the Gazette and why it is so whatever comes back. I wouldn’t crucial to liquidators is once that target it via the process, because Gazette notice goes in, banks look the chances are I wouldn’t know that at that notice and freeze the bank this entity was in a process at all. If I accounts [our emphasis]. So if you did know it was in a process, I would have director going willy nilly with a probably look on Companies House. credit card, that account is frozen from But it would just be a general enquiry the moment that the bank can see - particularly section 98 meetings. So that Gazette notice has been filed. they’re not in liquidation yet, but we’ve And the other good thing is if there got a suspicion that they’re going that is a credit balance at the bank which way, so put it into the website and you belongs to the creditors, the bank have might get the information out before checked The London Gazette so they the meeting.” (Respondent Beech) will have seen there is a section 98 meeting to be held, they freeze the Regarding errors in advertisement submissions bank account and any credit balance to the Gazettes, the advertising agent comes into liquidation to the benefit of interviewee reported: the creditors.” “I’ve noticed that we are getting “That can’t be underestimated, probably anywhere between 30 - 50% because, for example, in a liquidation of notices that have either something I was appointed to recently, there was missing or something that needs to a £6,000 credit balance which could be checked, or something that is just have disappeared and would have wrong in there, so that we go back incurred costs trying to get it back from to the client. There may be a few the directors. But because the bank errors where we can offer advice as looked at The London Gazette they to whether they really do need to froze the bank account.” (Respondent advertise something - especially as Oak) you know with the change in the law in 2009 and 2010, it has all been very In response to, “So in your experience the confusing, as there are three different banks are quite proactive in paying attention to advertising requirements depending on the Gazette’s content ?”, the IP added: whether the case has commenced in the last five years.” (Respondent Palm) [Deleted] bank are, but they are still owned by their shareholders, so that Frequency of accessing insolvency data might have something to do with it. via the Gazettes Once a bank has had notice of a section 98 meeting, they can’t apply Overall, the most common frequency of set off, so if you’ve got a situation accessing the Gazettes is between 1 to 4 times where you’ve got a credit balance a month (30% of respondents, Figure 10).

18 Kingston Law School - Final Report - TSO IP Gazette Survey 2014 Fig 11 - Frequency Of Accessing Insolvency Data (Q9)

60% 51% 56% 8% 36% 37% 50% 2% 28% 17% 30% 26% Proportion 40% of Sample 21% 6% (n=169) 24% 15% 30% 15% Excludes 14% 23% 20% missing Companies House website 10% 10% 10% responses The Gazettes 8% 5% 8% Other key source 0% 2% 4% Online - Insolvency News 3% Never/Not 1% Online - Insolvency Intelligence Once a applicable 2% Online - Jordans Insolvency Newsletter 1 to 4 month or 2 to 6 times a less Daily or times a month frequently more week frequently

Fig 12 - Frequency Of Accessing Insolvency Data Via Companies House Website (Q9), By Primary Role (Q1)

48%

35% 33% 50% 37% 33% 24% 40% 27% 24% 28% Proportion 30% of Sample/ 16% 20% Sub-sample 17% (Q1 Role) 3% Daily or more frequently 10% 10% 2 to 6 times a week 8% 0% 1 to 4 times a month 1% 10% Once a month or less frequently 2% Other (16) 7% Never/Not applicable Solicitor IP Support (29) Non-Response IP (97) (27) ALL (n=169)

Kingston Law School - Final Report - TSO IP Gazette Survey 2014 19 Fig 13 - Frequency Of Accessing Insolvency Data Via Companies House Website (Q9), By Practice Fees (All Branches, Q24)

56%

39% 42% 60% 39% 37% 50% 20% 32% 27% 18% 15% 40% Proportion 28% 10% 30% of Sample/ 20% Sub-sample 17% 3% 20% (Q24 Fees) Daily or more frequently 14% 3% 10% 10% 2 to 6 times a week 8% 1 to 4 times a month 2% 0% 11% Once a month or less frequently 2% =>£25m 7% Never/Not applicable £5m- (39) Non-Response £1m-4.9m 24.9m T/O <£1 (36) (33) ALL million (n=169) p.a. (44)

For IP support staff, their peak demand is - Dear IP letters more frequent, between 2 to 6 times a week - Eiir [Electronic Individual Insolvency (for 30%), whereas solicitors are less frequent Register] / Individual Insolvency users, with 38% using the Gazettes once a Register (Insolvency Service online) month or less often. - Experian - Geoff Swire Frequency of accessing insolvency data - ICC [assumed International Chamber of generally Commerce] - ILA Overall, the Companies House web site is - Insolvency ‘Linkedin’ group the most widely-accessed source (37% - Insolvency Service’s website of respondents, accessing daily or more - Internet general searches for news frequently, Figure 11), followed by the Gazettes articles, etc. e.g., Google (30%, 1 to 4 times a month), and the Insolvency - PI online News online service (24%, 1 to 4 times a - R3 month). - Red Flag Alert - RSM Tenon Tracker Other sources cited by respondents included: - solicitor’s circulars - Stubbs Gazette - AIB’s Register of Insolvencies - Technical bulletins - BIS website - Various databases including public - Centrax Index Phone Line at Companies registers i.e. electoral roll and HMLR Court [H.M. Land Registry] - Client updates e.g., on sectors - Commercial analysis service Frequency of accessing insolvency data - Respective company’s own sources via Companies House - Corpfin - Creditsafe In comparison with the Gazettes usage, the

20 Kingston Law School - Final Report - TSO IP Gazette Survey 2014 Fig 14 - Quality Rating Of Insolvency Data In The Gazettes (Q11) By Primary Role (Q1)

63% 3% 70%

45% 60% 15% 45% 18% 50% 46% 41% Proportion 40% of Sample/ 35% 30% Sub-sample 15% 22% 33% (Q1 Role) 20% 10% Excellent Very good 0%

Satisfactory 2% Other (16) Poor Solicitor 1% IP Support (29) Very poor IP (97) (27) ALL (n=169)

most frequent users of the Companies House And another IP interviewee noted: insolvency data are: a) Solicitors (48% visiting the web site once a day or more often, Figure Personally I don’t [use Companies 12), and, b) the larger practices (similarly, 56% House] but the firm does. We have of respondents working for insolvency or legal direct links. If we have information practices with an annual fee income of £25 on a new client for the potential of million or above, Figure 13). engagement, the first thing they do will be to use Companies House to pull Regarding CVLs and MVLs, an IP interviewee off all the annual returns, accounts, if said: it’s a group company, the whole of the group’s structure, and that’s all a part “[I am] More likely to go to Companies of our pre-appointment process. [We House, because although we have would be] Checking that we haven’t got a statutory duty to advertise in the conflicts of interest and independence Gazette, we also have a statutory duty issues, so [we would be] looking at to notify the register within 5 business each of the individuals and checking days. It’s easier to go to the Registrar whether or not they are involved in of Companies website because most other companies that potentially might practitioners ... will have an account be our clients and so on ... It would with Companies House, so you can be good to be able to PDF a version access it quickly. If you’re asking about because I think they were talking a creditor, and they say they haven’t about doing away with paper versions, had notification that an appointment but at least being able to print off a has been made, then you can go dated copy as good evidence. So in in and print everything off straight other words, when it prints off, it’s away. It’s a very easy service to use. clear when it was published and that (Respondent Oak) it is an accurate copy of what was published, and a [secure] PDF version

Kingston Law School - Final Report - TSO IP Gazette Survey 2014 21 Fig 15 - Could The Presention & Content Of Insolvency Data In The Gazettes Be Improved ? (Q12), By Primary Role (Q1)

89% 90% 80% 59% 50% 70% 65% 60% 66% Proportion 50% 41% of Sample/ 25% 40% Sub-sample 30% (Q1 Role) 25% 20% 10% 21% 7% 0% 22% 4% No 14% Other (16)

Yes (please specify) 11% Solicitor (29) IP Support (27) Non-Response IP (97) ALL (n=169)

Fig 16 - Could The Presention & Content Of Insolvency Data In The Gazettes Be Improved ? (Q12), By Respondents' Length of Time Working In The Insolvency Industry (Q21)

67% 66% 68% 70%

66% 60%

50% 50% Proportion 50% 40% of Sample/ 30% Sub-sample 30% 16% (Q21 Length 26% 17% 20% of time) 10% 22% 0%

No >20 years (93) 11% Yes (please specify) 11-20 years 6-10 years (19) (47) Non-Response 2-5 years (8) ALL (n=169)

22 Kingston Law School - Final Report - TSO IP Gazette Survey 2014 so that it can’t be copied or amended “Better clarity of information” in any way, and you can give it to the regulators as good proof that the “Better organised into appropriate meeting or appointment was published process” on the correct date and in sufficient time within the time lines required by “Categorised in to trade/activity. the rules.” (Respondent Pine) Downloadable.”

Quality of insolvency data published in “Complete petitioning creditor and their the Gazettes solicitors details to be entered in every bankruptcy creditor’s petition” Well over half of the respondents consider that the data quality is either ‘excellent’ or ‘very “Easier to locate information looking good’ (61%, Figure 14). for”

Support staff to IPs are the most favourably “Easier access/better filters” disposed group, where over three-quarters (78%) indicate that the data quality is either “Easier on-line searching/results” ‘excellent’ or ‘very good’ “Further information would be useful, Suggested improvements to the such as the appointing party in presentation and content of administrations, but it is acknowledged Gazette insolvency data that the content of adverts placed is governed by legislation” Almost a quarter of respondents offered suggestions for improvements (22%, Figures “Hard to search through the results” 15 and 16). “Have an index” Solicitors are the most critical group (41% indicating that improvements could be made), “Historic data to be available for longer as were those respondents with the least in the online version” experience in the insolvency industry (50% of those with 2-5 years’ experience, but this “Improve presentation of results sub-group is very small, Figure 16). The shown” most satisfied group, in terms of experience, comprised those respondents with over 20 “Improve search function. Website is years’ experience, with only 16% feeling not really user friendly.” that the Gazettes could be improved (Figure 16). However, this group also has a sizeable “Inconsistency of filing under the proportion of non-responses to the question correct headings in the online version” (17%). “It is a little old fashioned and hard to In summary, the suggestions included: follow” refinements to the online search process, the availability of output in .CSV or Microsoft Excel “It would be useful to have more formats, and, compatibility with proprietary sophisticated search options.” IP case management software. The full complement of suggestions is listed below: “More easily searchable”

“A better user interface and search “More online friendly. No need for the engine, it sometimes takes too long to paper copy. Easier to advertise and to locate the advertisement required” search.”

“Allow it to be exportable in .CSV or “Not user-friendly presentation. Old Excel format. Happy to discuss field fashioned” content of value to us.”

Kingston Law School - Final Report - TSO IP Gazette Survey 2014 23 “Please provide online standard Regarding possible improvements, the solicitor adverts for all insolvency types as interviewee responded: well as a general blank notice that can be tailored - alternatively, if it “I did used to find it a bit awkward could be merged into our IPS software when I’m looking for a particular package with some form of statutory company, having to scroll down to notice gateway that would simply be insolvency then to company insolvency marvellous” and then you have to squeeze the name of the company into not very “Search facilities could be improved, big text box - it was a bit tricky to find sometimes takes a few moments to things. I think it has improved in the find the data I am looking for” last year or two, but I’m reasonably confident I can get what I want out of “Search facility can be cumbersome” it. Or to put it another way, if I don’t find something, then I’m reasonably “Search facility could do with improving confident that it wasn’t in there in the particularly with refining searches and first place. It would be nice if it had display of search results” a general search form where it says “what is the name of the company”, or “Search facility is not particularly the individual or the thing that you’re effective” interested in, and you just filled in that. You might have other search criteria, “Search feature could be improved” such as a date range or whether it [is] insolvency or planning or all the other “Searching can be difficult - more stuff that I know the Gazette covers refined search options would help to - you could just hit that and go in that narrow range of results” way; and it’s my ignorance if you can already do that, and I just don’t “Some of the search functions are because I’m blissfully unaware of it, “clunky” - too many error messages!” but in terms of functionality just having a general search form that you can “Standard wording for adverts” put information in would make my life easier I think. Apart from that it does “Stop producing in such an old the job, and I use it and generally find fashioned way/script” what I want, and if I don’t find it, then I’m pretty confident that it’s not there in “The online search could be made a the first place.” (Respondent Beech) little easier.” Awareness of the Gazettes amongst the “The online version would be better if it wider business population was searchable by name.” During one of the interviews, which touched on “The publication comprises of statutory possible service improvements, an IP noted: advertisements, its presentation reflects that” “As a practitioner and having used it for years, I find it quite user friendly “Timing and ability to search” because I know how to read it and look at it. This whole idea of advertising for “We just use it to ensure that our claims in the Gazette, a local painter statutory responsibilities are met. Not and decorator looking for a creditor for any other reason” isn’t going to look in the Gazette for notice that he’s got to prove his debt “When doing a search it’s not clear to to me, which is why we do write to me whether the result will be specific them as well, but as I said before, to the case or just one of those long this idea of MVLs ... [possibly: the lists” Gazette notice serves as a record, a]

24 Kingston Law School - Final Report - TSO IP Gazette Survey 2014 Fig 17 - Annual Budget For Subscriptions To Insolvency Publications/Services (Q13), By Primary Role (Q1)

50% 52%

34% 60%

38% 50% 33% 24% 24% 22% 40% 31% 21% Proportion 30% of Sample/ 18% Sub-sample 17% 7% 10% 20% (Q1 Role) Don't know/Not applicable 10% <£1,000 p.a. (inc. VAT) 8% 10% 8% 0% £1,000 to £2,499 6% £2,500 to £4,999 4% 6% Other (16) £5,000 to £9,999 7% Solicitor IP Support (29) =>£10,000 IP (97) (27) ALL (n=169)

piece of paper just in case a creditor annual budget of £10,000 or above (Figure comes back after I’ve distributed the 18). whole estate - I don’t know do normal lay people read the Gazette? I Nonetheless, a notion that every IP or solicitor don’t think they do to be honest operates with a clear-cut budget for expenditure with you. I think it’s very much used on insolvency publications and/or services, by professionals [our emphasis].” appears not to be the case, as our solicitor (Respondent Oak) interviewee noted:

Respondent expenditure on insolvency “The Companies House stuff we have publications/services a general subscription, I think some of it is free anyway because it is a Nearly a third of respondents indicated that government website. But downloading their local office expenditure on insolvency bits and pieces, I think it’s about £1 publications/services was less than £1,000 per download, so I couldn’t really annually (31% of respondents, Figures 17 hazard a guess at what we spend on and 18). Companies House and the other stuff, i.e., the insolvency intelligence stuff Regarding either ‘Don’t know’ cases or through our Westlaw subscription, the inapplicability of practice budgets for and I have not the faintest idea what subscriptions to insolvency publications or we pay for that. So that’s very hard to services, support staff to IPs represented the quantify. In terms of ad hoc spending, largest sub-group (52%, Figure 17). it is probably just The London Gazette, and the client pays for that Perhaps unsurprisingly, practices with the as part of the cost of their matter largest fee income reported having the largest of disbursement. I can’t really give budget, with 23% of those with an annual you a cost for other things, it’s either income of £25 million or above reporting an wrapped up in global subscriptions

Kingston Law School - Final Report - TSO IP Gazette Survey 2014 25 Fig 18 - Annual Budget For Subcriptions To Insolvency Publications/Services (Q13), By Practice Fees (All Branches, Q24)

41% 52% 39% 60% 28% 33% 50% 33% 16% 31% 21% 15% 40% 31% 21% Proportion of Sample/ 8% 30% 15% 23% Sub-sample 14% 5% 20% (Q24 Fees) 17% 8% Don't know/Not applicable 8% 9% 10% Less than £1,000 p.a. (inc. VAT) 8% £1,000 to £2,499 p.a. 7% 0% £2,500 to £4,999 p.a. 4% =>£25m 7% 2% £5,000 to £9,999 p.a. £5m- (39) £10,000 or above p.a. £1m-4.9m 24.9m T/O <£1 (36) (33) ALL million (n=169) p.a. (44)

that cover the entire practice, or it’s it’s very quick and you know it’s done so very ad hoc that I wouldn’t have a correctly. They are the ones who are feel for what the spend is I’m afraid.” expert at doing it. So any queries, say, (Respondent Beech) for example, I’ve missed out a date or ... the company number doesn’t tally Use of third party agencies to place with the company name or something, advertisements in the Gazettes they would come back to me on that. [But] Human error does happen … Whilst discussing individual voluntary arrangements (IVA), one of the IP interviewees It’s a very small cost and what we do said: is a category one disbursement, which is met from the estate. I don’t exactly “No, that’s not gazetted but I don’t know what the cost is, but they also approach the Gazette direct, I give you a free listing in [web source approach a company called [deleted]. deleted]. Sorry, I know exactly what When I get notice that I’m going to the cost in total is, [but] I don’t know put a company into CVL, I fill out a ... what their share of it is. The listing notice which I then e-mail to [agency can show you if you’re looking for a deleted], saying please insert into the particular practitioner who you think next available Gazette. They insert it may have been appointed over some into the Gazette and they e-mail me case. You can go to that website and back with a copy of a confirmation of it will show you whether a notice has my order and a confirmation that it’s been filed. ... Now in an MVL, creditors gone to The London Gazette. When it’s have to be paid in full, together with been advertised, it’s [agency deleted] statutory interest if they haven’t been that actually give me back the advert, paid before the MVL starts. The so I don’t approach the Gazette direct. liquidator files a notice in the Gazette It’s much easier to use a third party, to prove that they advertised, no

26 Kingston Law School - Final Report - TSO IP Gazette Survey 2014 Fig 19 - Does The Practice Use The Gazette For Business Development Purposes ? (Q14), By Primary Role (Q1)

97% 100% 75% 89% 80% 92% Proportion 91% 60% of Sample/ 40% Sub-sample 25% (Q1 Role) 20%

0% 3% 11% Other (16) 8% No Solicitor (29) 9% IP Support (27) Yes - please describe briefly IP (97) ALL (n=169)

creditors came forward and that’s what share they hold as individuals and stops IPs from getting sued by missing companies. We split the data into creditors. We have advertised for regions and monitor which jobs we claims and no one has come forward. are instructed on by the insolvency That’s a really important point about practitioners” the Gazette which is very useful on MVLs. (Respondent Oak) “Identifying bankruptcy cases”

Use of the Gazettes for practice “Identifying winding-up petitions” development “Insolvencies within our locality/type Only 9% of the respondents report using the of business/identify their professional Gazettes for business development purposes advisors” (Figure 19). “Marketing team use it for business However, larger practices are twice as likely as intelligence reasons” the average to use the Gazettes for this purpose (18% of respondents with an annual fee income “Monitoring insolvency activity in of £25 million or above, Figure 20). certain regions and where applicable establishing whether the accountants/ Examples offered by respondents comprised: lawyers are known to the firm”

“Finding out which practitioners are “Monitoring wins of other firms” working on which cases” “Prospecting for bankruptcy cases” “Identifying which insolvency practitioners are being appointed on “Review potential clients to see which jobs, what proportion of market

Kingston Law School - Final Report - TSO IP Gazette Survey 2014 27 Fig 20 - Does The Practice Use The Gazette For Business Development Purposes ? (Q14), By Practice Fees (All Branches, Q24)

82% 100% 100% 85% 80% 91% Proportion 91% 60% of Sample/ 40% Sub-sample (Q24 Fees) 18% 20%

15% 0%

0% =>£25m (39) 9% No £5m-24.9m 9% £1m-4.9m (36) (33) Yes - please describe briefly T/O <£1 million p.a. (44) ALL (n=169)

whether any petition has already been fee income of £25 million or more, Figure 22). presented” Interestingly, none of the solicitor respondents reported using the Gazettes for competitive “To analyse number of MVLs, tracking. competitor activity, etc.” Examples offered by respondents comprised: “To identify appointing parties (e.g. administrations) and ascertain whether “Activity in local market place” our relationship with them needs further development” “Analysis of appointments/appointers”

“Understand who is winning “Awareness as to what other firms in appointments in our locality. Belfast are obtaining appointments” Knowledge who is busy in general” “Collating numbers of appointments of “Use to contact accounting firms other firms” whose clients face insolvency” “Competitor tracking of recent Use of the Gazettes for appointments” competitive tracking “Following up on companies that were A small proportion of the respondents report being monitored for clients” using the Gazettes for competitive tracking (14%, Figure 21). “Identify work winners”

Larger practices are much more likely than “Keeping tabs on competitors the overall sample to use the Gazettes for this appointments” purpose (33% of respondents with an annual

28 Kingston Law School - Final Report - TSO IP Gazette Survey 2014 Fig 21 - Does The Practice Use The Gazette For Competitive Tracking Purposes ? (Q16), By Primary Role (Q1)

100% 88% 100%

80% 81% Proportion 82% 60% 86% of Sample/ 40% Sub-sample (Q1 Role) 13% 20% 0% 19% 0% 18% Other (16)

No 14% Solicitor (29) IP Support (27) Yes - please describe briefly IP (97) ALL (n=169)

Fig 22 - Does The Practice Use The Gazette For Competitive Tracking Purposes ? (Q16), By Practice Fees (All Branches, Q24)

100% 85% 94% 67% 80% 93% Proportion 60% 86% of Sample/ Sub-sample 33% 40% (Q24 Fees) 20%

15% 0%

6% =>£25m (39) 7% No 14% £5m-24.9m £1m-4.9m (36) (33) Yes - please describe briefly T/O <£1 million p.a. (44) ALL (n=169)

Kingston Law School - Final Report - TSO IP Gazette Survey 2014 29 “Local work winners” from corporate recovery services) because there seems to be a growth in the local market “Monitoring appointments” whereby people with insolvency difficulties will “Monitoring Trust Deed numbers & need more help on the personal side ? Liquidation appointments” Suggestions for other information/notices “Monitoring wins of other firms” which could usefully be included in the Gazettes to help practices “Number of cases where competitors are appointed” 14% of the respondents offered a range of suggestions, and the most commonly “Numbers of appointments by cited related to The Law of Property Act practitioner” Receivership.

“Review of MVL appointments” Additional suggestions for other information/ notices included: “See whom is appointing and who is getting work” “A searchable database of CCJs” [County Court Judgments] “To check on block transfers of appointments. To monitor competitor “A searchable list of registered deaths activity” as some of our bankruptcy estates realise pension policies” “To identify firms being appointed and to the business sectors” “Better information on the nature of the insolvent company’s business” “To identify who is obtaining [also noting that Articles of Association appointments” are often general, out of date, or misleading] “To see how many other local IP’s have notices” “Consistency with trading addresses on all adverts” “To track number of MVL appointments, analyse where clients “CVA/IVA if legislation were changed” have used other firms to do their MVLs” “Fixed charge appointments”

“Tracking appointments” “Geographic analysis of insolvency appointments and analysis by sector” “Tracking bankruptcy cases” “LPA Receiverships appointment detail “Tracks the number of insolvency jobs would be useful in so far as it relates to other local IPs receive” corporate borrowers”

But judging by both sets of foregoing comments, “Proceeds of Crime Act receivership” many respondents may not draw any distinction between the concept of business development Service standards of the Gazettes and competitive tracking. Almost two-thirds of the respondents answering It is possible, for example, that the tracking the question about service standards consider of bankruptcies could arise from trying to that they are either ‘excellent’ or ‘very good’ get a general feel for the market in terms of (63%, Figure 23). procedure use, just as much as it may be about seeing what competitors are up too, i.e., do practices need to redeploy internal resources to a personal insolvency department (away

30 Kingston Law School - Final Report - TSO IP Gazette Survey 2014 Fig 23 - How Would You Rate The Service Standards Of The Gazette ? (Q19), By Primary Role (Q1)

14% 19% 59% 19% 52% 9% 44% 60% 49% 51% 50%

31% 25% 40% 37% Proportion of Sample/ 30% 33% 22% Sub-sample 12% 20% (Q1 Role)

10% Excellent Very good 0%

Satisfactory 1% Other (16) Poor Solicitor 1% IP Support (29) Very poor IP (97) (27) ALL (n=169)

Fig 24 - Comparison of Kingston Law School & TSO Surveys: How Would You Rate The Service Standards Of The Gazette ? (Q19)

41% 47% 51%

60%

12% 33% 50% 40% Proportion Excellent 8% 30% of Very good 20% Sample Satisfactory 0% 10% 1% Poor 0% 0% 1% Very poor TSO Survey (n=222) Kingston Survey (n=169)

Kingston Law School - Final Report - TSO IP Gazette Survey 2014 31 Service standards of the Gazettes Figure 26). - differences in ratings between the Kingston and TSO samples But a falling trend is evident amongst Law Society members, whereby respondents who There is a marked difference between the are affiliated with The Law Society are more Kingston and TSO online surveys, whereby likely to be members if they are younger rather 41% of the TSO respondents rate the Gazette than older (30% of those aged 26-35, compared service standards as ‘excellent’, compared with 8% of those aged 56-65). with only 12% of the Kingston respondents (Figure 24) Size of practice

The variation may be influenced by the Approximately a third of respondents (35%) differences in sample compositions, with the work in a ‘single-branch’ practice based in the Kingston sample predominantly comprised of UK (Figure 27). However, a similar proportion IPs, in contrast to the dominance of IP support (33%) work for practices having multiple staff in the TSO sample (Figures 1 and 2). offices located in the UK only, and 30% work for multiple-office practices in the UK and/or But perhaps more influential is the difference internationally. in target audience: whereby affiliation with the Association of Business Recovery Professionals The single largest group of IPs work in ‘single- (R3) predominates amongst the Kingston target branch’ UK practices (39%), whereas the audience, compared with what might be largely largest group of solicitor respondents work advertising contacts in the TSO counterpart. in practices with multiple branches in the UK (52%). Also, it is not clear whether or not the inducement to participate in the TSO online survey (an Local branch staff size - 60% of the local opportunity to win an iPad) - presumably to help branches in which respondents work have improve the response rate - materially biased fewer than 25 staff (Figure 28). the TSO responses. The largest group of IPs work in practices Respondent profile having 10-24 staff (29%), whereas the largest group of solicitor respondents work in practices Membership of Recognized Professional with 100 or more staff (38%). Bodies (RPBs) Practice fee income Overall, the Insolvency Practitioners Association is the most commonly cited body by respondents Nearly a half of respondents (47%) report (IPA, 43%, Figure 25), followed by The Institute working for practices with an annual income of Chartered Accountants in England & Wales of less than £5 million (for all offices, Figure (ICAEW, 26%), and, The Law Society (18%). 29).

12% of the IP respondents (11 out of 89) As found with the staff size analyses, the largest reported that they are members of both ICAEW group of IPs work in the smaller practices (34% and IPA. working in practices with an annual fee income of less than £1 million, Figure 29). And the As might be expected, the vast majority of the largest group of solicitor respondents work in solicitors are members of The Law Society practices with an annual fee income of between (90%). £5 million and £24.9 million (38%).

When the various professional memberships Age of respondents are compared, there is rising age profile for ICAEW membership within the sample. That Just over a half of respondents (51%) were 46 is, respondents who are affiliated with the years of age or older (Figure 30). ICAEW are more likely to be members if they are older rather than younger (46% of those IP respondents in the sample were typically aged 56-65, compared with 11% aged 26-35, a decade older than the solicitors: the largest

32 Kingston Law School - Final Report - TSO IP Gazette Survey 2014 e l n ) e l p e o l i p t m o r m a R o a S p - 1 S o b f Q r ( u o P S % % % 0 % 0 % 0 % 9 0 % 8 0 % 7 0 % 6 0 5 0 4 0 3 % 2 1 0 ) ) 6 1 1 ( r Q e % ( h 8 t 3 O e l ) 9 o 2 ( r R o t i c y i l % r o 7 S a % t 3 r m o i p ) r p 7 u 2 P ( S % 9 P y I 1 B % , 3 ) ) 1 7 0 9 ( % 2 % 3 P % I 9 1 % % 4 1 3 Q 1 ( 3 % ) y 4 9 6 d % 1 0 = o 9 n ( % B 4 L % L 9 l % A 9 a % 1 5 % n % 7 1 o i % 8 s % % e 3 9 v s % 1 o 1 e b 2 a f % % S 6 4 e o 5 h S t r L f % - % o 2 P ) 5 I d e % n A n 7 a d C o l 3 % I t ( N 6 o e e % 1 c B c i 3 s S R v 5 i % f r A 8 o e n 1 S C S y t - A y g e % i C d c I 6 c n n o - 2 A o a e l S C v d c l e % n r C o I w 3 e ) a s A l a 4 y t n n t i - L I o R e i s c s e t t c S h f n n o t W a a n f t S t i E o n O n s A w t t u u A i C a n o o I n P L c p c a I - ( t U c i c - n r s A A A u n e e h l R o d d o n i a c t e e S s o r i r c a t - i W r i e e A t t t c y r r d c t o e d i a a n a r s e r h h a s r o b P C e C h A d t t f y r n s d u c o m r a a e A l n i e h f e g i e e t n n t C n v r u o l o f t i i i e E t t o t i o M t s a C s n l c i e n f n t u I - I a o s r u g t t i e P n n t 5 s o a R y i t t n c 2 I s n a r n i u o e c o t i v o g l c c s i i c o l s s A o A F n I S d e r e t r a h C f o e t u t i t s n I

Kingston Law School - Final Report - TSO IP Gazette Survey 2014 33 I n s t i t u t e o f C h a r t e r e d S I n A o A s s l o c i s c c l o i v t o o c e u i r n a s n I c n t t i y R a o s t n n e P i t t g u r s o a I I u t n f n e i c l n C s a s t o i t o t t E e i i i t f o l o u r v n C t n n e t i g e f h e i n A l e a a r o c F u d s n r y f t t d A h e C C i P o r s a g h h r e s r a n a a i d o t c d r r y c t t t A 2 e e i W i - t a c r i r o S 6 e e t c a i n o d o R d l e e n u A A A - s r n - c c U ( t - I a c c L M P n I o o n a C i A u u t t w A s e n n o E i S t t f n a a m W t o n h n S c t e t s c i s e b o I 4 L - i t n n t y 3 a l A s e a ) % w I o C r n e r l d v C S l s e 2 a o A - n 6 n c I h c % d C B i e y A - i t y S 1 y S C p 8 e o A % r f v R R O S i c B 1 c e 1 e 6 o N f ( 1 % t I l o C s a % R n A n p e d I 5 ) e o % 3 - o f 0 L c t % S n h o e 4 S d % a g b e o n 2 v 3 n 0 e % i % s t 1 2 % e A 4 % d g e P 3 A 2 9 L r % % ( L o Q 8 ( n % f = 2 e 1 6 5 s 9 ) ) s 4 6 i % 2 o 6 o - n 3 l d 5 a ( 8 Y 2 % l e 7 a ) B r s o 3 d 6 y - 4 5 ( ( 4 Q 6 ) 2 0 4 ) 6 - 5 5 ( 5 9 ) 5 6 - 6 5 ( 2 4 ) 0 5 1 1 % 2 % 0 2 5 3 0 3 % 5 4 % 0 4 % 5 5 % 0 % 5 % 0 % % % S P o ( u Q f r b o S 2 - p 5 S a o m a A r m t p g i o l p e e n ) l / e

34 Kingston Law School - Final Report - TSO IP Gazette Survey 2014 Fig 27 - Size Of Practice (Q22) By Primary Role (Q1)

38% 52% 60%

39% 28% 50% 26% 6% 35% 37% 40% 25% Proportion 37% 25% of Sample/ 1% 30% 33% 28% Sub-sample 32% 21% 20% (Q1 Role) 30% 0% 0% 10% Small practice - UK only 6% 1% Small practice - based outside UK 0%

Multiple offices - UK only Other (16) Multiple offices - UK and/or beyond Solicitor 1% IP Support (29) Non-Response IP (97) (27) ALL (n=169)

Fig 28 - Staff Size Of Respondent's Branch Practice (Q23) By Primary Role (Q1)

25% 38% 40% 29% 35% 21% 25% 30% 18% 10% 19% 23% 25% Proportion of Sample/ 20% 19% Sub-sample 15% (Q1 Role) 1 to 4 Staff 11% 12% 10% 5 to 9 16% 10% 5% 10 to 24 25 to 49 0% 50 to 99 Other (16) 100 or more Solicitor 1% Non-Response IP (29) IP (97) Support All (27) (n=169)

Kingston Law School - Final Report - TSO IP Gazette Survey 2014 35 Fig 29 - Practice Fees For All Branches (Q24) By Primary Role (Q1)

31% 38% 34% 40% 35% 26% 28% 30% 24% 25% 25% Proportion 21% of Sample/ 25% 20% 3% Sub-sample 20% 23% 15% (Q1 Role) 19% 10%

T/O <£1 million p.a. 7% 5%

£1m-4.9m 0% 10% 6% £5m-24.9m Other (16) =>£25m Solicitor (29) IP Support Non-Response IP (97) (27) All (n=169)

Fig 30 - Respondent Age (Q25), By Primary Role (Q1)

38% 31% 40% 38% 33% 28% 35% 19% 35% 28% 30% 30% 19% 29% 19% 25% Proportion 6% 19% of Sample/ 27% 20% 11% Sub-sample 15% 3% 15% (Q1 Role) 14% 10% 1% 6% 5% 2% 16% 8% 7% 0% Over 65 3% 56-65 4% Other 46-55 (16) 36-45 5% Solicitor (29) 26-35 1% 5% IP 18-25 Years old Support IP (97) Non-Response (27) ALL (n=169)

36 Kingston Law School - Final Report - TSO IP Gazette Survey 2014 Fig 31 - Respondent Gender (Q26), By Primary Role (Q1)

75%

69% 80%

69% 70%

66% 60% 48% 52% 50% Proportion 40% of Sample/ 25% Sub-sample 24% 30% (Q1 Role) 20% 30% 32% 10%

7% 0%

Male Other (16) 1% Solicitor (29) Female 2% IP Support (27) Non-Response IP (97)

ALL (n=169)

band of IPs were aged 46-55 (38%), whereas We do, however, draw occasional comparison their solicitor counterparts were aged 36-45 with two other surveys of IPs and IP support (38%). staff, which used similar methodologies to gather data (CEBR, 2008, and TSO, 2011). Gender of respondents 1. Whether the speed of publication Male respondents outnumbered female makes The London Gazette useful as respondents by approximately two to one (66% an early indicator of insolvency levels male to 32% female, Figure 31). (in advance of the official statistics). The London Gazette is available The most evenly-balanced distribution is immediately whilst the official data can evident amongst IP support staff, in marked be up to four months behind. contrast to the ‘Other’ group of respondents, where males outnumbered females 3:1. Potentially, the Gazettes may offer a useful opportunity to improve upon the current 6. CONCLUSIONS AND insolvency data 14, but this would require an RECOMMENDATIONS analysis for each edition which fell within a given time frame. For example, a time series The research study set out a number trend spanning a decade might comprise of objectives, which follow in bold, and approximately 520 sets of weekly data points. are accompanied by our corresponding However, the adoption of an automated observations: process, using data held in a standardised format, may make this a relatively simple and We also repeat our earlier caveat, in that straightforward task. generalising the survey analyses to a wider population is problematic, as is the case with many other business surveys which also rely 14 http://www.insolvencydirect.bis.gov.uk/otherinformation/ on non-random sampling. statistics/201311/index.htm

Kingston Law School - Final Report - TSO IP Gazette Survey 2014 37 2. Whether or not from the point of are often general, out of date, or view of insolvency professionals The misleading]. London Gazette does a “good job”. l “Consistency with trading addresses Almost two-thirds (63%) of the respondents on all adverts” answering the above question consider the service standards of the Gazettes to be either l “CVA/IVA if legislation were changed” ‘excellent’ or ‘very good’ (Figure 23). A further (Company Voluntary Arrangements, third (33%), rated the service as ‘satisfactory’. Individual Voluntary Arrangements) On a related question, enquiring about the quality of insolvency data published by the l “Fixed charge appointments” Gazettes, well over half of the respondents consider that the data quality is either ‘excellent’ l “Geographic analysis of insolvency or ‘very good’ (61%, Figure 14). A further third appointments and analysis by sector” (33%), rate the data quality as ‘satisfactory’. But the extent to which the publishers can l “LPA Receiverships appointment detail exercise quality control over the source data would be useful in so far as it relates to is debatable. corporate borrowers”

3. From the point of view of insolvency l “Proceeds of Crime Act receivership” professionals how The London Gazette could improve. 4. What the profession wants from The London Gazette. Almost a quarter of respondents offered suggestions for improvements (22%, Figures This objective overlaps its predecessor and 15 and 16). Solicitors are the most critical also several successors, and it arguably group, with 41% indicating that improvements combines the extent to which current and could be made. potential needs are or can be satisfied on a commercial basis. The most common concern appears be a constrained search capability, but the typical In addition to the issues covered by the previous feedback was general - the comments offered objectives, there are: readership/access of can be found in ‘Suggested improvements regional versions, the preferred format (print to the presentation and content of Gazette vs. online), the information sought, and, the insolvency data’ (pp. 23-24). reasons for placing advertisements.

For suggestions regarding other information/ n Regular usage of regional editions notices in the Gazettes which could usefully of the Gazettes - the London edition be included to help practices - 14% of the recorded the widest readership (90%), respondents offered a range of suggestions, followed by the Edinburgh (12%) and and the most commonly cited related to The Belfast (5%) editions (Figure 4). Law of Property Act Receivership. n Print vs online usage - respondents Additional suggestions for other information/ marginally favour online usage only (45%) notices included: over dual paper and online usage (41%) (Figure 5). Smaller IP practices tend to l “A searchable database of CCJs” favour online only, in contrast to the larger [County Court Judgments] practices, who veer towards dual paper and online usage (Figure 6). l “A searchable list of registered deaths as some of our bankruptcy estates n Main information sought - the greatest realise pension policies” demand is for winding-up petitions (80%), followed by administration orders (67%) l “Better information on the nature of and bankruptcy notifications (64%) the insolvent company’s business” (Figure 7). Winding-up petitions were [also noting that Articles of Association of particular interest to solicitors (97%).

38 Kingston Law School - Final Report - TSO IP Gazette Survey 2014 Other requirements included CVLs and lawyers are known to the firm” MVLs. l “To analyse number of MVLs” n Main reasons for advertising in the Gazettes - administration orders l “To identify appointing parties (e.g. represented the greatest demand (62%), administrations) and ascertain whether followed by bankruptcy notifications (56%) our relationship with them needs and winding-up petitions (56%) (Figure further development” 8). Other reasons included CVLs and MVLs. 6. The use of The London Gazette by Insolvency Practitioners for Regarding respondent expenditure on competitive tracking purposes. insolvency publications/services, almost a third of respondents indicate that their local office 14% of the respondents reported using the expenditure is less than £1,000 annually (31% Gazettes for competitive tracking (Figure 21). of respondents) (Figures 17 and 18). Larger practices were much more likely than the overall sample to use the Gazettes for this Alternative sources of insolvency information purpose (33% of respondents with an annual may complement IP requirements and/or fee income of £25m or more) (Figure 22). potentially offer opportunities for expansion by the Gazettes. Examples included: n Key sources of insolvency data - the l “Analysis of appointments/appointers” most widely-accessed source is the Companies House web site (37% of l “Awareness as to what other firms in respondents, accessing daily or more Belfast are obtaining appointments” frequently), followed by the Gazettes (30%, 1 to 4 times a month), and the l “Collating numbers of appointments of Insolvency News online service (24%, 1 to other firms” 4 times a month) (Figures 11, 12 and 13). Other key sources included Creditsafe, l “Monitoring Trust Deed numbers & Dear Insolvency Practitioner (Insolvency Liquidation appointments” Service), Geoff Swire, Individual Insolvency Register (Insolvency Service), l “Review of MVL appointments” and, R3 (Association of Business Recovery Professionals). l “To check on block transfers of appointments” 5. The use of The London Gazette by Insolvency Practitioners for business l “To identify firms being appointed and development purposes. to the business sectors”

Only 9% of the respondents report using the But judging by their related comments, many Gazettes for business development purposes respondents may not draw any distinction (Figure 19). However, larger practices are between the concept of business development twice as likely as the average to use the and competitive tracking. Gazettes for this purpose (18% of respondents with an annual fee income of £25m or more) 7. Whether there are specific areas of (Figure 20). insolvency (corporate in particular) to which value/effectiveness could Examples of such use included: be added through Gazetting – Law of Property Act Receivership for example. l “Identifying winding-up petitions” This aspect has been covered by objective 3. l “Monitoring insolvency activity in certain regions and where applicable establishing whether the accountants/

Kingston Law School - Final Report - TSO IP Gazette Survey 2014 39 8. Whether access to London Gazette When CH went online it was a ‘stunning piece of data has stimulated niche, value software’, and it remains that compared with the generating service industries (e.g. Gazette which is more ‘adequate’. Companies services which consolidate information House Direct was a revolutionary change in his on dividends). view. Downloading a PDF from the Gazette web site seems to be a much narrower document This topic was not addressed by the online and CH has much better search functionality. survey, but Respondent Poplar, an IP, said The Gazette is less bespoke and CH is more that he uses the Gazette to identify areas of user-friendly. He felt that the online Gazette is new business. Specifically, to look at activity written by an IT professional doing it in ‘a nice at particular addresses; repeated insolvencies way’ as opposed to the more user-friendly CH at particular addresses; patterns with directors interface. and phoenixism in relation to companies, i.e. s.216 IA86 issues where the same director Respondent Poplar felt that the categorisation is associated with substantially similar name at CH is much more useful. However, the companies to the company that has gone into Boolean general text search for the Gazette an insolvency procedure. He also uses the is good and this is not something one can Gazette to examine where repeated IP contact do at CH. If searching by liquidator, all of the with directors undertaking s.216 IA86 type liquidator’s appointments can be sought on the activity is occurring. Gazette but not with CH.

9. Whether there is evidence that 11. The research would also investigate creditors findThe London Gazette an potential ideas and areas for expansion effective way to find out about events. regarding how The London Gazette could extend its service in non- This topic was not addressed by the online mandatory directions survey, and seeking this evidence via respondents/interviewees would have meant This aspect has been covered by objective 3. that they were acting as a proxy for creditors. Discussion Respondent Poplar (IP) was unable to answer this question, but Respondent Oak (IP) said It is clear from this survey that IPs require a (noted earlier): number of additional features from the Gazette which will improve their practice on a day to “... a local painter and decorator day basis when using insolvency information. looking for a creditor isn’t going to If the Gazette does not incorporate some of the look in the Gazette for notice that he’s ideas or functionality improvements that have got to prove his debt to me ... I don’t been suggested by users, then IPs will (and do) know do normal lay people read the seek their insolvency information elsewhere. Gazette? I don’t think they do to be We therefore recommend that the Gazette honest with you. I think it’s very much investigate the possibility of introducing new used by professionals.” functionality. Particular areas for improvement include: A survey of creditors directly would be needed to help resolve this issue. n Search engine functionality with improved filters 10. What are the benefits and disadvantages of a London Gazette n Allowing information to be exportable to type service as compared with a .CSV (comma-separated values) or .XLS Companies House type register service (Microsoft Excel) format and generally or an insolvency register type service. downloadable

This topic was not addressed by the online n Organising data according to insolvency survey, but Respondent Poplar (IP) said process Companies House (CH) microfiches meant waiting a day before online access was possible. n Standardisation of online adverts

40 Kingston Law School - Final Report - TSO IP Gazette Survey 2014 For further areas of development see ‘Suggested n The Increased Global Harmonisation of improvements to the presentation and content Insolvency Regulation with the increased of Gazette insolvency data’ (pp. 23-24). potential to offer insolvency information into other jurisdictions (as with bankruptcy A small focus group, or further contact with tourism above); and users individually, may provide further insight into the scope for improving the search n An Increase in the Costs (and Associated capabilities. Fees) of Administering the Insolvency System and how this might impact of Possible future developments Gazette information users’ budgets.

It is impossible to predict with accuracy how All of these potential developments (and more) the future of insolvency practice might change will impact on insolvency information and ergo and develop. However, some trends have been the Gazette. identified15 . For example: The Gazette may wish to investigate how n Increased IP scrutiny on conduct and fees their offering might anticipate changes in the following the recent Kempson review profession. Some of the answers to this survey, particularly the qualitative answers, highlight n More debtor education initiatives some areas that are ripe for consideration. For example, the critique of functionality, n A reduction in the number of recognised particularly in relation to searching the material professional bodies already contained on the database but also the change in areas of procedure use, i.e. the n An increase in bankruptcy tourism increase in Debt Relief Orders (DROs). The above areas for development highlight future n More focus on miscreant directors; and trends that might be anticipated now in terms of the Gazette offering. Any reformulation of the n A rise in debt relief orders as the main product should take account of these potential personal insolvency solution, as opposed shifts in market practice. to bankruptcy. The latest statistics release from the Insolvency These themes are already seeing some Service shows that they have perfected development in practice. The increase in and improved their information offering 16. bankruptcy tourism, for example, must actuate Highlights include a new sector breakdown for on the minds of Gazette developers because corporate insolvency. This shows the number of the potential for insolvency information of liquidations by broad industry sector. The publication in non-standard jurisdictions. free offering from the Insolvency Service in terms of statistical information is of use to IPs Further themes or developments that might for sector monitoring purposes. It is perhaps occur in the future of insolvency law and for that reason that the Insolvency Service practice that the Gazette might wish to have also in their last statistics release made considered are: the information available for the first time is a comma separated value (.CSV) file containing n The abolition of the Insolvency Service all of the headline statistics. This .CSV file was to be replaced by a private sector made available in response to feedback from organisation and to what extent would that users of the Insolvency Service’s statistics. effect the Gazette’s offerings The Insolvency Service statistics still lack one fundamental quality however that the Gazette n The privatisation of insolvency is able to capitalise on, namely, timeliness relationships of delivery of information. The quarterly time lag between Insolvency Service statistic release is not something which the Gazette 15 See further: Tribe, J., Crystal balls and insolvency: what does the future hold? (2012) International Company and 16 http://www.insolvencydirect.bis.gov.uk/otherinformation/ Commercial Law Review, 23(12), pp. 405-411. statistics/201311/index.htm

Kingston Law School - Final Report - TSO IP Gazette Survey 2014 41 suffers from. The Gazette is able to release may make this a relatively simple and insolvency information instantaneously. Further straightforward task. ways of increasing insolvency information provision capitalising on this quality should be n Early awareness of insolvent debtors investigated. amongst the business community - a survey of UK businesses, enquiring into Finally, Mr Justice Morritt’s contention: the predominant channels by which they first learn about insolvent debtors, could “I consider that the efficacy of an help to clarify the role of the Gazette in advertisement in the London Gazette assisting trade creditors. The sample has been exaggerated by both sides. might be sufficiently large to ascertain No doubt it alerts the company’s whether there are any particular issues bankers so that an order under sec. for consideration in terms of one or more 127 of the Insolvency Act may be of: small and/or medium-sized enterprises required in order that the company (SMEs), broad industry sectors, and, the may continue to trade. But I do not regions. think that the Gazette is so widely n Profiling the IP sector - there may be read that an advertisement would alert some scope for analysing ‘mandatory’ ordinary trade creditors, who would membership data, for example, as not discover the existence of the gathered by an IP body such as R3, petition by other means anyway. By the to provide a more comprehensive and same token, the Secretary of State’s reliable profile of the sector. concern that a petition presented in the public interest should be n Regular usage of regional editions of brought to the attention of the public the Gazettes - our sample contained is hardly allayed by advertising it in only a small number of respondents who the Gazette. Nevertheless, the rules were based outside England, but a further require advertisement unless the court survey and/or analysis of Official Receiver otherwise directs. Thus it is for the activity might provide a further insight into company to show sufficient reason to regional variations. depart from the normal practice.” In-house surveys The contention that, inter alia, the Gazette’s readership is relatively small and limited As noted earlier, there is a marked difference to banks, and that advertisement does not between the Kingston and TSO online surveys, always alert ordinary trade creditors, has not whereby 41% of the TSO respondents rate been proved either way by this work. What the Gazette service standards as ‘excellent’, this research has shown however is that the compared to only 12% of the Kingston professional IP readership do find that the respondents (Figure 24). Gazette is of considerable benefit to their work. This is in both the statutory sense of The variation may be influenced by the compliance with compulsory advertisement, differences in sample compositions, with the which they must do, but also with the wider Kingston sample predominantly comprised of use of the Gazette that has been evidenced IPs, in contrast to the dominance of IP support in this report. staff in the TSO sample (Figures 1 and 2).

Further research But perhaps more influential is the difference in target audience: whereby affiliation to the n Improving current insolvency data - the Association of Business Recovery Professionals Gazette may offer a useful opportunity (R3) predominates amongst the Kingston target to improve upon the current insolvency audience, compared with contacts for the TSO data, requiring an analysis for each target audience. edition falling within a given time frame. The adoption of an automated process, n Composition of surveyed samples using data held in a standardised format, - the target audience for survey invitations needs to be kept in mind when

42 Kingston Law School - Final Report - TSO IP Gazette Survey 2014 interpreting survey responses, as does the final sample composition and likely bias. Questionnaires should solicit key information which may help to gauge the extent of any bias, such as respondent key function, age, gender, physical location, staff size, highest qualification and professional affiliation. n Generalising findings to a larger population - in the absence of a random sample, generalising is problematic (see Appendix 2). But with relatively small populations, random selection can be impractical. Comparisons with other surveys may be helpful, but bias - especially self-selection bias - is an attendant risk.

Kingston Law School - Final Report - TSO IP Gazette Survey 2014 43 Appendix #1: Statutory Provisions (A) Corporate Insolvency that require the Gazetting of insolvency information Liquidation

In addition to specific mentions ofThe London n Notice of resolution to wind up: s.85 Gazette throughout the IA86 and the IR86 there IA86 stipulates that when a company is also specific guidance on LG notices within has passed a resolution for voluntary Chapter Seven of the IR86. This section of the winding up, it shall, within 14 days after rules stipulates, for example, that all notices the passing of the resolution, give notice published must specify insofar as it is applicable of the resolution by advertisement in The in relation to the particular notice: London Gazette. Failure to comply with this section can result in a fine. “(a) the name and postal address of the office-holder acting in the n Final meeting prior to dissolution: s.94 proceedings; IA86 again relates to liquidation and the (b) the capacity in which the office- LG. The section notes, inter alia, that the holder is acting and the date of pre-dissolution meeting shall be called by appointment; advertisement in The London Gazette, (c) either an e-mail address, or a specifying its time, place and object and telephone number, through which the published at least one month before the office-holder may be contacted; meeting. (d) the name of any person other than the office-holder (if any) who may be n Effect of company’s insolvency and contacted regarding the proceedings; MVL creditors meetings: s.95 IA86 (e) the number assigned to the office- stipulates that notice of the creditors’ holder by the Secretary of State; and meeting for MVLs 17 is to be advertised (f) the court name and any number once in The London Gazette and once at assigned to the proceedings by the least in 2 newspapers circulating in the court.” relevant locality (that is to say the locality in which the company’s principal place In terms of the authority of the Gazette it is of business in Great Britain was situated noted in IR86, r.12A.37 that a copy of the during the relevant period). Gazette containing any notice required by the Act or the Rules to be gazetted is evidence of n Meetings of creditors for Creditors’ any facts stated in the notice. In the case of an Voluntary Liquidation (CVLs): s.98 IA86 order of the court notice of which is required by stipulates that notice of the creditors’ the Act or the Rules to be gazetted, a copy of meeting is to be advertised once in The The London Gazette containing the notice may London Gazette and once at least in two in any proceedings be produced as conclusive newspapers circulating in the relevant evidence that the order was made on the date locality (that is to say the locality in which specified in the notice. the company’s principal place of business in Great Britain was situated during the The rest of Chapter Seven IR86 contains further relevant period). guidance on form and substance. We must now however examine the specific instances n CVL final meetings: s.106 IA86 of where gazetting is mentioned in the statute stipulates that each such meeting shall be and rules. The following paragraphs highlight called by advertisement in The London the statutory provisions where gazetting is Gazette specifying the time, place and specifically required. object of the meeting, and be published at least one month before it.

17 On MVLs see: Richards, R. and Tribe, J., Members’ Voluntary Liquidations: Part 1: A Declaration of Under Use? (2005) Company Lawyer, 26(5), pp. 132-136, and: Richards, R. and Tribe, J. Members’ Voluntary Liquidations: Part 2: MVLs compared (2005) Company Lawyer, 26(11).

44 Kingston Law School - Final Report - TSO IP Gazette Survey 2014 n Liquidators appointment in MVLs n Notice of the end of administration: and CVLs: s.109 IA86 stipulates that Pursuant to IR86, r.2.113 this should be the liquidator shall, within 14 days after gazetted. his appointment, publish in The London Gazette and deliver to the registrar of Administrative Receivership companies for registration a notice of his appointment in the form prescribed n The administrative receiver’s notice by statutory instrument made by the and advertisement of appointment: Secretary of State. Again fines can be IR86 r.3.2 stipulates that the notice of levied for a lack of compliance with this appointment of the administrative receiver section. shall be gazetted. n Punishments under the IA86: Schedule n Administrative receiver’s report to 10 outlines the punishment for, inter creditors: IR86, r.3.8 stipulates that if alia, failure to comply with s.85(2) IA86, an administrative receiver gives notice namely, the company failing to give notice under section 48(2)(b), the notice shall be in The London Gazette of resolution for gazetted. voluntary winding-up. n Procedure for summoning meeting Administration under s.48(2): IR86, r.3.9 stipulates that the administrative receiver as soon as n Moratorium Notice: Insolvency Rules reasonably practicable must also have 1986 (IR86), r.1.40(2) stipulates that the gazetted a notice of the meeting. directors of the company should as soon as reasonably practicable cause a notice (B) Personal Insolvency 18 of the coming into force of the moratorium to be gazetted. IR86 r.1.42(2) stipulates n Bankruptcy Annulment: IR86, r.5.60 that a notice and advertisement of the end stipulates that the former bankrupt may of a moratorium should also be gazetted. in writing within 28 days of the date of the order require the Secretary of State to n Administrator’s Appointment: IR86 give notice of the making of the order. As r.2.27 stipulates that the notice of soon as reasonably practicable the notice appointment of the administrator shall shall be gazetted. See also the gazetting be gazetted as soon as reasonably requirements on annulment in IR86, practicable. r.6.213. n Meetings to consider administrator’s n Bankruptcy Order: IR86, r.6.34 proposals: IR86 r.2.34 and 2.35(4A) stipulates that the official receiver as soon stipulates that an administrator must have as reasonably practicable shall cause gazetted a notice which, in addition to notice of the order to be gazetted. The the standard contents, must state that an notice shall include (pursuant to IR86, initial creditors’ meeting is to take place; r.6.46(2A)) that a bankruptcy order has and the venue fixed for the meeting, the been made against the bankrupt; the date purpose of the meeting; and, a statement and time of making of the bankruptcy of the effect of Rule 2.38 (entitlement to order; that the bankruptcy order was vote). made on the debtor’s own petition; and the date of presentation of the petition. n Administration distribution: IR86 r.2.95. stipulates that where an administrator n Bankruptcy Order Amendments: IR86, is proposing to make a distribution to r.6.35 stipulates that at any time after the creditors he shall give notice of that fact making of a bankruptcy order, the official and that, inter alia, that notice shall be receiver or the trustee may apply to the gazetted. court for an order amending the full title

18 See further: http://www.london-gazette.co.uk/issues/ recent/10/personal-insolvency

Kingston Law School - Final Report - TSO IP Gazette Survey 2014 45 of the proceedings. If the official receiver from which it is effective. The discharged thinks fit, notice of the order shall be bankrupt may require the Secretary of gazetted. State to give notice of the discharge. As soon as reasonably practicable such n Creditors meetings in bankruptcy notice shall be gazetted. proceedings: IR86, r.6.79 regulates the first meeting of creditors. If under section n Bankruptcy and persons at risk of 293(1) IA86 the official receiver decides to violence: IR86, r.6.235B stipulates that summon a meeting of creditors, he shall in any gazetting the details of the debtor fix a venue for the meeting; not more than to be included in any notice gazetted or 4 months from the date of the bankruptcy otherwise advertised must not include order. As soon as reasonably practicable, details of the debtor’s current address. notice of the meeting shall also be gazetted and may be advertised in such n Notice of Dividends (Bankruptcy and other manner as the official receiver thinks Winding up): IR86, r.11.2 stipulates fit. that before declaring a first dividend the office-holder shall give notice of the n General Power to Call Meetings in intended dividend. As soon as reasonably Bankruptcy: IR86, r.6.81 relates to the practicable such notice shall be gazetted. general power to call meetings. The official receiver or the trustee may at any time summon and conduct meetings of creditors for the purpose of ascertaining their wishes in all matters relating to the bankruptcy. Notice of such meetings shall be gazetted. n Trustee in Bankruptcy’s Appointment: IR86, r. 6.124 regulates the advertisement of appointment of a trustee in bankruptcy. A trustee who is appointed by a creditors’ meeting, as soon as reasonably practicable after receiving the certificate of appointment, shall give notice of that appointment. Such notice shall be gazetted. n Final meeting of bankruptcy creditors: Pursuant to IR86, r.6.137 the trustee as soon as reasonably practicable after giving notice must have gazetted a notice of the final meeting. n The Public Examination of a Bankrupt: Pursuant to IR86, r.6.172 where the official receiver thinks fit, a notice of the order shall be gazetted not less than 14 days before the day fixed for the hearing. n Certificate of Bankruptcy Discharge: IR86, r.6.220 regulates the certificate of discharge. Where it appears to the court that a bankrupt is discharged, whether by expiration of time or otherwise, the court shall, on his application, issue to him a certificate of his discharge, and the date

46 Kingston Law School - Final Report - TSO IP Gazette Survey 2014 Appendix #2: Note On Sampling & Availability [or Convenience] Small Populations samples are also common but must be used with caution and only for Like many other business surveys, the Kingston specific purposes. These samples survey of IPs (and related personnel) is a are the least likely of any technique to ‘non-probability’ sample. In this case, of the produce representative samples. Using ‘availability’ or ‘convenience’ type, constrained this approach anyone who will respond by targeting known groups of insolvency will do. Surveys where newspapers professionals. ask readers to complete and return questionnaires printed in the paper, Non-probability Sampling Techniques pop-up web surveys, or TV station ‘phone-in’ polls are examples of such Non-probability sampling is where samples are samples. While these techniques can gathered in a process that does not give all of produce quite large samples cheaply the individuals in the population equal chances their size does not compensate for of being selected (Crossman). their unrepresentativeness. This type of sample can be useful for pilot testing de Vaus (2002, p.88, p.90) notes: questionnaires or exploratory research but must not be used to make any “There are often situations where claim to representing anything but the probability sampling techniques are sample itself.” either impractical or unnecessary. Probability Sampling Errors & Small (finite) In such situations the much cheaper Populations non-probability techniques are used. These techniques are appropriate “Probability theory enables us to say, when sampling frames are unavailable with a specific degree of confidence, or the population is so widely how likely the patterns in a sample are dispersed that cluster sampling would to reflect those in a wider population. be too inefficient. For example, it would Statistical generalisation relies on be very difficult to obtain a random having randomly drawn representative sample of homosexuals or marijuana samples and is the mode of users. Any attempt to do so would generalisation used in sample survey either be so expensive that we would research.” (de Vaus, 2002, p.69) end up with a sample too small for meaningful analysis or the rate of So, whilst the following text applies only to dishonesty and refusal would produce survey samples which are randomly selected such a bias that the sample would not - ‘probability samples’ - it is included for be representative despite probability background purposes and also indicates why sampling methods ... larger samples may bring diminishing returns in terms of improved accuracy (de Vaus, 2002, Purposive [or Judgmental] sampling p.81). is a form of non-probability sampling where cases are judged as typical of “There are several things to note about some category of cases of interest to the relationship between sample size the researcher. They are not selected and accuracy. randomly. Thus a study of leaders of the conservation movement might, First, when dealing with small samples in the absence of a clearly defined a small increase in sample size can sampling frame or population, select lead to a substantial increase in some typical leaders from a number of accuracy. Thus increasing the sample typical conservation groups. While not from 100 to 156 reduces sampling ensuring representativeness, such a error from 10 per cent to 8 per cent. method of selection can provide useful With larger samples increasing the information ... sample size does not have the same payoff. To reduce sampling error from

Kingston Law School - Final Report - TSO IP Gazette Survey 2014 47 2.5 per cent to 2 per cent we need to modes may be viable for those who increase the sample by 900 cases. are not ‘wired’.” [i.e., from 1600 to 2500, and for a 50/50 split on a variable] For the wider UK population in 2011, access to the Internet at home peaked at 90% for 35-44 The rule is that to halve the sampling year olds, falling to 73% for 55-64 year olds error we have to quadruple the sample (according to Ofcom, 2011, p.8). Unsurprisingly, size. Beyond a certain point the cost of access for those aged 65 or older was lower, increasing the sample size is not worth at around 40%. it in terms of the extra precision. Many survey companies limit their samples to 2000 since beyond this point the extra cost has insufficient payoff in terms of accuracy.

Second, the size of the population from which we draw the sample is largely irrelevant for the accuracy of the sample. It is the absolute size of the sample that is important.

The only exception to this is when the sample size represents a sizeable proportion of the population (e.g. 10 per cent). In such cases a slightly smaller sample is equally accurate. The calculation of sample size in this situation requires the application of a finite population correction ...”

Surveying via the Internet de Vaus (2002, p.79) also noted, which is still generally valid a decade later:

“The fact that internet samples are unlikely, at the present stage, to be representative of the general population does not mean that they have no value or future. At present the internet can be a very useful means of obtaining representative samples of specific populations. Organisations in which all staff are online can provide excellent internet samples of the organisation. High access to the internet among certain sectors of the population (e.g. young middle-class males; professionals etc) means that the internet may be a viable means of obtaining quite good samples of these groups. Many associations collect email information from members. For members who are on the internet web surveys can be used while other

48 Kingston Law School - Final Report - TSO IP Gazette Survey 2014 Appendix #3: CEBR/R3 Survey 2008 memberships of recognised professional bodies were reversed, with IPA membership A previous survey of IPs in the UK was being most common, followed by the ICAEW published in 2008 (The value of the insolvency (Figure 35, derived from Figure 25). industry, CEBR, 2008), which used a similar survey methodology to the Kingston study, i.e., One factor could be multiple memberships: the target audience of R3 members received 12% of the Kingston IP respondents reported an invitation to participate via e-mail. that they were members of both ICAEW and IPA. CEBR reported that they received a total of 169 responses, with 109 classifying themselves as Respondent Poplar’s view was sought on this IPs. At the time, there were 1774 IPs licensed issue, and he said that IPA membership is in the UK, and thus the response rate was generally comprised of smaller practices and approximately 6% of IPs. the IP partners in these smaller practices are more likely to be more ‘hands on’. Whereas in The aim of the CEBR/R3 survey was to assess larger practices other members of staff (other the economic impact of the sector, but the than the appointment-taking IP) do the work, findings contained some interesting similarities. and partners tend not to use the Gazette in For example, regarding the female and male those larger firms. For the Kingston survey it age distributions of the IP respondents, the might therefore mean that an ICAEW-affiliated authors noted that: larger practice partner simply did not respond [or was less inclined to do so], whereas the “Although 79 per cent of insolvency smaller practice IP partner did (typically an practitioners are male, women are IPA member). becoming a growing and significant part of the industry. The average insolvency practitioner is 46 years old. However, half of insolvency practitioners under the age of 35 are female. Within the females, seventeen per cent are less than 35 years of age; this compares with five per cent of males.”

This was accompanied by a graphical plot (Figure 32).

Notably, a comparable analysis, using the Kingston data for IPs only (Figure 33), displays a similar distribution, whereby the female IP respondents are typically a decade younger than their male counterparts.

Secondly, the CEBR survey reported that the predominant licensing bodies for IPs in the UK were, in descending order (Figure 34): 1) Institute of Chartered Accountants in England & Wales (ICAEW)

2) Insolvency Practitioners Association (IPA)

3) Association of Chartered Certified Accountants (ACCA

This contrasts with the Kingston data, whereby the predominant first and second most prevalent

Kingston Law School - Final Report - TSO IP Gazette Survey 2014 49 Fig 32 - Survey Comparison (CEBR, 2008)

Age and gender of insolvency practitioners, United Kingdom, 2007

70%

60%

50%

40%

30%

20%

10%

0% 25-34 34-44 45-54 55-64 Over 65

Male Female

Source: cebr survey of R3 members, 2007, with standard error bars [Figure 15, CEBR (2008)]

Fig 33 - IPs Only: Respondent Age (Q25) By Gender (Q26)

44%

50%

44% 19% 30% 40% Proportion 25% 30% 31% 40% of IP Sample/ 5% 20% Sub-sample 9% 25% (Q26 Gender) 10% 7% 26-35 Years old 0% 20% 36-45 Female (29) 46-55 Male (67) 56-65

ALL IPs (n=96)

50 Kingston Law School - Final Report - TSO IP Gazette Survey 2014 Fig 34 - Survey Comparison (CEBR, 2008)

Number of insolvency practitioners by licensing body, United Kingdom, 2007

800

700

600

500

400

300

200

100

0 ICAEW IPA ACCA LS ICAS SS ICAI LSS LSNI

Source: The Insolvency Service, Law Society of Northern Ireland, specif-ically requested, October 2007 [Figure 7, CEBR (2008)]

Fig 35 - Membership Of Recognised Professional Body (Q20), By Primary Role: Insolvency Practitioners vs Full Sample (Q1)

53% 43%

37% 26%

60% 21% 16% 50% Insolvency Practitioners Association - IPA Institute of Chartered Accountants in England and Wales - ICAEW 5% 8% 40% Association of Certified Chartered Accountants - ACCA Proportion 4% of Sample/ Institute of Chartered Accountants in Scotland - ICAS 5% 30% 3% 9% 18% Sub-sample Insolvency Practitioner Unit of the Insolvency Service 4% 20% (Q1 Role) Institute of Chartered Accountants in Ireland - CARB (ICAI) 3% None of the above 10% 2% 1% Solicitors Regulation Authority - SRA (Law Society) 0% 0% Law Society of Scotland - LSS ALL IP (97) (n=169)

Kingston Law School - Final Report - TSO IP Gazette Survey 2014 51 Appendix #4: Bibliography n Richards, R. & Tribe, J., Members’ Voluntary Liquidations: Part 2: MVLs Primary Sources compared (2005) Company Lawyer, 26(11) Statute n The London Gazette, issue 20430, 7 n Insolvency Act 1986 January 1845, printed page p60, online search page 24 of 32 n Insolvency Rules 1986 n Tribe, J., Crystal balls and insolvency: Case Law what does the future hold ? (2012) International Company and Commercial n Re Normandy Marketing Ltd (1993) Law Review, 23(12), pp. 405-411 B.C.C. 879. n Tribe, J. & Hunt, S., Insolvency bonds: n Life Enterprises Ltd v The Commissioners history, policy and substance (2012) for Her Majesty’s Revenue and Customs Insolvency Intelligence, 25(3), pp. 37-45 (2009) KFTT 340 (TC). n Tribe, J & Hunt, S., Insolvency Bonds: Surveying/Data Collection Practice and Reform (forthcoming) Insolvency Intelligence n de Vaus, David, Surveys In Social Research (2002), Routledge Websites n Crossman, Ashley, Types Of Sampling n http://www.london-gazette.co.uk/ Designs, About.com, http://sociology. about.com/od/Research/a/sampling- n http://www.london-gazette.co.uk/ designs.htm (downloaded 17 October insolvency 2013) n http://www.london-gazette.co.uk/issues/ n Internet use and attitudes (July 2011), recent/10/personal-insolvency Ofcom

Secondary Sources 2nd January 2014 Kingston Law School - Final Report - TSO IP n Gazette Insolvency Practitioner Survey, Gazette Survey Jan 2014.indd TSO (2011, online survey, unpublished) n The market for corporate insolvency practitioners, (2010), Office of Fair Trading, p. 4 n The value of the insolvency industry, (2008), CEBR

Journal Articles n Handover, P. M., A History of the London Gazette: 1665-1965 (1965) HMSO; London n Richards, R. & Tribe, J., Members’ Voluntary Liquidations: Part 1: A Declaration of Under Use? (2005) Company Lawyer, 26(5), pp. 132-136

52 Kingston Law School - Final Report - TSO IP Gazette Survey 2014