Chapter 2 - The Insolvency Service

Chapter 2
Future Developments
A project to introduce a new financial estate accounting system (previously
known as Cameo) is to be re-started during 2006-07. This system will replace
the two current separate estate accounting systems (LOLA and BANCS).
During the year it was decided to restructure the Banking Directorate in
advance of the introduction of the new financial system with the aim of
increasing efficiency and further improving the service to customers. The
restructuring should be complete by 5 June 2006 when the Directorate will
become known as the Estate Accounts Directorate. The current split of
resource between separate OR and IP sections will change to an operational
function and an accounting and support function.
2.8 Companies Investigation Branch
In his budget speech on 16 March 2005 the Chancellor of the Exchequer
announced that following the Hampton Review the DTI's Companies
Investigation Branch (CIB) would become part of The Insolvency Service. CIB
assess whether or not it is in the public interest to investigate companies
against which complaints have been made to the DTI. Where they are
satisfied that there is good reason and it is in the public interest they conduct
an investigation under powers contained in the Companies Act 1985. The
investigations are confidential but if the complaint is substantiated the
Secretary of State may seek to wind the company up. The Secretary of State
can also apply to the Court for the directors to be disqualified and information
may also be used to prosecute the company or directors or may be passed
to other regulatory organisations to take action. CIB became part of The
Insolvency Service on 1 April 2006. CIB is funded by the DTI and from 1 April
2006 The Service's investigation and enforcement budget (see section 2.3)
will be increased to cover the costs of CIB's work.
34