UK enforcement tightens as insolvencies hold firm — what should credit managers do next?

FCA enforcement: governance is everyone’s business

When the Financial Conduct Authority demands US$101m from a major fund for governance failures, it’s not just a headline for City insiders. It’s a reminder that transparency, disclosure, and board oversight underpin every relationship of trust — including trade credit. If a business hides material risk from investors, it may also hide it from suppliers. Credit teams should track regulatory news as closely as financial statements.

Motor finance redress: liquidity will tighten

As the FCA refines its CP25/27 motor finance redress scheme, lenders and dealerships are preparing for remediation costs. Expect delayed payments, slower procurement cycles, and tighter cash allocation. Credit professionals selling into that space must review terms and conditions, ensuring they can suspend delivery or charge interest when agreed schedules slip. Flexibility without protection is a trap.

Insolvency Service data: distress that won’t go away

The Insolvency Service’s October report shows corporate insolvencies holding at elevated levels. Construction and retail remain the most vulnerable, while hospitality continues to lag on post-pandemic recovery. This isn’t a spike — it’s a plateau. High costs, rate pressure, and weak demand have baked distress into the system.

If you’re still chasing debts on 90-day terms, ask whether that’s discipline or denial. Athena’s data shows that debts escalated within 45 days stand a significantly higher recovery chance than those left to age.

Action points for Q4

• Reassess credit policies: tighten risk thresholds for stressed sectors.
• Automate follow-ups: early reminders reduce human error and time lag.
• Collaborate with enforcement partners: third-party involvement doesn’t harm relationships — silence does.
• Stay informed: regulatory and insolvency updates aren’t noise; they’re early warnings.

Athena Collections combine insight with action — helping UK firms recover what’s owed quickly and respectfully. Governance lapses, redress schemes and insolvency spikes are beyond your control, but how you respond isn’t. Move early, stay calm, and keep the cash flowing.