ACS approval: Company Voluntary Arrangements
Learn about applying for ACS approval if you are in a Company Voluntary Arrangement or an Individual Voluntary Arrangement.
A Company Voluntary Arrangement is a legal agreement that helps a business repay its debts over time. It’s an alternative to liquidation and shows that your business is still viable, even if it’s currently insolvent. It means that you agree to repay part of what you owe over a set period – for example, 50p per £1 over 5 years.
How being in a Company Voluntary Arrangement might affect your application
Bring in a Company Voluntary Arrangement will affect whether you are approved under our ACS. We might refuse your application for ACS approval if we believe you pose a risk to the scheme.
We are more likely to approve your application for ACS approval if:
- your Company Voluntary Arrangement has been in place for at least one year
- you give us a copy of the agreement
- you show that you’re following the terms of the agreement
- you agree to pay our fees and your assessing body’s fees upfront
If we do approve you, we will include these conditions in your approval letter and inform your assessing body of them.
We may still refuse your application if we think the risk is too high.
If we refuse your application
If we refuse your application for ACS approval because you were in a Company Voluntary Arrangement, you should wait at least one year before reapplying. This gives you time to fix the issues that led to needing the arrangement.
If you’re a sole trader or director in an Individual Voluntary Arrangement
An Individual Voluntary Arrangement is a legal agreement that helps individuals repay their debts over time. It usually lasts 5 years and stays on the person’s credit record for 6 years.
Being in an Individual Voluntary Arrangement might affect our decision to refuse or grant you approval under our ACS. It might lead us to conclude that you are not a fit and proper person to get approved.
If you are in an Individual Voluntary Arrangement and applying for ACS approval, you should:
- tell us
- explain why it happened
- show what controls you’ve put in place to manage financial risk (for example, shared authority for financial decisions)