Who Can Legally Carry Out Insolvency Work in the UK? Lessons from Davis Acquisitions Ltd

When a company begins to struggle financially, directors often turn to online advice or seek professional help for liquidation or rescue options. However, not all “insolvency experts” advertising their services are authorised to act legally. The recent case of Davis Acquisitions Ltd, which was shut down for unlicensed insolvency activities, serves as a strong warning for directors across the UK.

This case highlights a critical point that every company director should understand: only licensed insolvency practitioners (IPs) are legally allowed to carry out insolvency work in the United Kingdom. Using an unlicensed adviser is not only risky, but it can also lead to serious consequences for both the director and the company.

At Simple Liquidation, we regularly hear from directors who have been misled by unregulated firms promising “cheap” or “quick” liquidations. These companies often act as intermediaries or brokers, taking fees and passing cases on to licensed practitioners — or worse, offering illegal insolvency services without any authorisation at all. The Davis Acquisitions case shows why it is essential to work only with a licensed, reputable firm.



In early 2025, the Insolvency Service obtained a winding-up order against Davis Acquisitions Ltd, which had been offering insolvency advice and services to struggling companies despite not being authorised to do so. Investigators found that the company was misleading directors by presenting itself as a legitimate insolvency firm, taking fees for services it was not legally permitted to perform.

The Insolvency Service described Davis Acquisitions as an “unlicensed operator” that exploited distressed directors by charging significant sums for advice and documentation which held no legal weight. As a result, the High Court ordered the company to be wound up in the public interest.

This case is just one of several enforcement actions taken in recent years to protect directors and creditors from unregulated advisers. It demonstrates the UK government’s commitment to clamping down on firms that prey on vulnerable businesses during difficult times.


Lessons from Davis Acquisitions Ltd on Legal Insolvency Work 

Location: London, UK

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