Weekly Blog by Philip King, CEO of the ICM - 'we have to do more than just watch'

The Insolvency Service consultation on reforming the regulatory framework for Insolvency Practitioners has been much on my mind lately.

Before Easter, I had a number of meetings with insolvency organisations and the Insolvency Service, and the survey of ICM Members prompted a tremendous reaction; this week I've been working on the ICM's response to proposals that could significantly impact credit professionals.

The consultation has three elements: the establishment of an independent complaints body; setting clear objectives for the regulatory regime; and detailed amendments to particular regulations.

One of the key and overriding objectives is to better protect the interests of unsecured creditors. The ICM will be supporting the idea of a new complaints body and other measures to improve and enhance transparency, and it will be encouraging clearer objectives and a regime that achieves the best possible outcomes for those losing money when a customer goes bust.

There is, however, a fundamental issue that needs to be addressed: too many credit professionals fail to engage in the insolvency process. Their position appears to be that they've already suffered a bad debt so why spend more time and effort in what follows? Whereas I understand such a position when there are conflicting priorities - and it makes sense to focus on tomorrow's opportunities rather than yesterday's problems - if we don't play our part in the insolvency, we can't really complain about the outcome and the activity of the Insolvency Professional who is acting on our behalf, can we?

Visit http://www.icm.org.uk/icm-consultancy/government-consultation to view our consultation responses

Guest Blog by Sean Feast - Managing Editor of Credit Management - 'Does everyone really love a wedding?'

Generally speaking, I love holidays. Can't get enough of them. Or at least I thought I did, until I suddenly realised just how many Bank Holidays we are trying to cram in to the next few weeks. Of course the situation has been compounded by the 'extra' holiday, courtesy of The Royal Wedding, and I would not want to seem churlish by appearing in any way scrooge-like or miserable at the prospect of such a happy occasion. But it is playing merry havoc with work.

Several staff at my own company have of course put in for 'annual leave' (or as we used to call it, 'holiday') over the coming weeks to maximise their time off. And who can blame them? Then of course we will always have the one or two who burn the candle at both ends and throw a sickie at the first hint of sunshine peeping through the clouds.

The Lawyer magazine last week reported that the bank holiday bonanza was reducing the amount of time available to bill clients at the most vital time of the year. One departmental head at a top 20 firm was reported to have said: "I wish the royal couple well, but to be honest it's been a massive pain the a**e." I sort of agree, although would perhaps not be so inclined towards the vernacular.

But there is a serious point to all this. Human nature often leans towards procrastination - putting off until tomorrow what should be done today. And with shorter weeks, this could have a genuine impact on cashflow. Whether it's making sure the monthly billing is executed on time, or chasing payments that are now due, this latest round of Spring-time jollity will no doubt test the mettle and the patience of credit managers for some time after the final crumbs of that ridiculously large chocolate egg have been consumed. Happy Easter!

Weekly Blog by Philip King, CEO of the ICM - 'Make a difference'

A couple of months ago, we welcomed the launch by Justin Tomlinson MP of an All Party Parliamentary Group on Financial Education for young people. His initiative closely followed our own announcement that we were engaging with DebtCredt as a way of giving Members a direct route to providing practical support to educating youngsters into the mysteries of managing cash.

The APPG has been holding a UK wide intensive inquiry into the level of financial eduction in primary and secondary schools, entitled 'Financial Education and the Curriculum.' The six-month inquiry is calling for evidence from across the financial and education sectors to reveal the true level of financial education in our schools in order to establish a consistent and sustainable model for educating future generations. The aim, they say, is to enable the creation of a model of finance education that truly equips young people with the skills and knowledge they need to become intelligent and responsible consumers.

The inquiry committee is looking for examples of evidence from the financial and education sectors detailing the current approaches to financial education in the UK. The inquiry will be looking at provisions that currently exist for financial education in schools in order to establish a consistent and sustainable education model for future generations in England. This is where you come in!

I think it is essential that we, as an industry and as the ICM, take part in this consultation. My view is that personal finance education (addressing attitudes and behaviours as well as numeracy) should be a statutory requirement throughout the whole school curriculum. I believe also that such learning is best delivered by teachers who have themselves been schooled in the art of personal finance and who have the support of professionals from within the financial community. The initiative has gained some real momentum in recent weeks and deserves to be supported. We have the opportunity of ensuring future generations learn from the mistakes of the past - a past where there is so much financial distress.

Submissions to appg@pfeg.org have to be received no later than 12 noon on 3 May 2011 and I would urge you to take part.

As I shall be away next week, I have invited Sean Feast - the managing editor of Credit Management - to 'guest blog' on my behalf.

http://www.icm.org.uk/home/icm-news/414-icm-welcomes-new-move-for-financial-education-in-schools

http://www.icm.org.uk/home/icm-news/413-icm-strengthens-ties-with-debtcred

http://www.pfeg.org/curriculum_and_policy/appg_on_financial_education_for_young_people/appg_inquiry.html

Weekly Blog by Philip King, CEO of the ICM - 'Export, cheques and kids'

Mark Prisk's Small Business Economic Forum at BIS discussed how SMEs can be encouraged to export, and through Lord Stephen Green the Minister outlined the recent steps the Government has taken to support international trade, and specifically the work of the Export Credit Guarantees Department (ECGD).

Consensus among all those present was clear: a strong consistent message needs to be communicated and support must be provided by the banks, business organisations and the Government to dispel the myth that exporting is somehow a 'dark art' that is almost invariably 'high risk'. International trade is fundamental to growing the economy, and helping SMEs to find new markets for their goods and services is therefore key.

Elsewhere, the Payment Council used its Large Corporate User Forum to update members as to the progress of the Cheque Replacement Programme. While it is clear that behind the scenes there is much going on, there are signs that many consumers have yet to be persuaded to use online alternatives. The next big decision may not be due until 2016 but a real change in mindset and practice is going to be needed by then.

The Personal Finance Education Group (pfeg) Forum, meanwhile provided an opportunity to hear news of recent programmes including 'My Money Week' that will be running from 27 June to 3 July and includes competitions for schools to enter as part of a concerted drive to promote financial education to children. If you have any connection with a school, please point them to http://www.mymoneyonline.org/. And don't forget you can get involved with the DebtCred initiative through the ICM so to express an interest and learn more please just email governance@icm.org.uk