Insolvency Costs Project First Stage Questionnaire

CCP Research Foundation Project

The Cost of Insolvency Caused by Bank Misconduct

Many thanks for taking the time to populate this short questionnaire.  It should only take about 5 minutes to complete.

The purpose of this initial fact find is two-fold:   to gain an insight into the size of the pool of insolvencies due to bank misconduct (such as withdrawal of overdrafts, bank restructuring charges, defaults due to covenant breaches, mis-sale of IRHPs and embedded swaps, etc) and to identify cases for the initial, pilot study.  In order to better understand the size of the pool, it is critical at this stage that any businesses that consider their insolvency to be bank-driven contribute to this study.

The pilot project will focus initially on the sale of IRHPs to SMEs, and will analyse the wider financial implications of insolvency where there is a demonstrable causal connection between a clear mis-selling of an IRHP and the business’ insolvency. The Project will, in due course, also look into law reform questions raised by the associated issues, in particular, whether or not current regulation and law addresses satisfactorily the need for proper redress and "business rescue" where the cause of business failure is not the business itself but bank misconduct.

The loss of otherwise viable businesses due to mis-selling of financial products is a phenomenon that has been highlighted in the media, but there has, as yet, been no thorough investigation into the cumulative cost of these losses. The primary goal of this study is to produce a comprehensive and forensic calculation of the costs of insolvency due to creditor misconduct.

For the initial pilot study, we will choose 12 businesses from a range of industries, sizes and covering relationships with various banks in which the insolvency of the business was arguably caused by the mis-sale of an IRHP.  The purpose of the pilot study is to not only quantify these costs, but also to test the methodology so that a wider project can be undertaken which will also look at other bank-driven causes of insolvency as listed above.  Therefore, we should be grateful if you would complete this questionnaire as soon as possible in order that we are able to understand the true size of the pool and to move onto these other issues swiftly.

The deadline for submission for the initial review of this questionnaire is midnight 12 July 2015, but we are always accepting submissions for the purpose of investigating further work

Further information on the study can be found on