New R3 President Sonia Jordan Sets Agenda on Reform, Talent and Advocacy

Sonia Jordan takes the helm at R3 at a pivotal moment for the UK’s restructuring and insolvency profession, as persistent economic uncertainty, geopolitical instability, and evolving business pressures drive demand for turnaround expertise across the market. A partner at Knights with three decades of experience, Sonia steps into the presidency with a mandate to elevate the profession’s profile, deepen engagement with policymakers, and help shape a modern insolvency framework that supports business rescue while fostering innovation and responsible entrepreneurship. We spoke to Sonia about her priorities, championing the profession, and making sure the UK’s insolvency and restructuring framework remains fit for purpose and showcases a diverse and inclusive membership.

1. You step into the presidency at a moment of sustained economic pressure. What are the most urgent risks you see facing UK businesses right now, and how should the restructuring profession respond?

UK businesses are operating in a challenging economic climate where sustained pressure is putting many otherwise viable businesses at risk. R3’s latest Business Health report highlighted the strain on day-to-day cash flow, finding that 1.57 million UK businesses were carrying overdue invoices in the first quarter of the year, with the total number of late payments rising to 17.48 million.

At the same time, insolvency levels remain high by historical standards with the impact of higher fuel and energy costs hitting many small and medium-sized businesses hard. In that environment, the most urgent task is to ensure that businesses and individuals are able to access the right support at the right time.

One of the things we always stress in R3’s communications with businesses and individuals in financial stress or distress is that it’s crucial to get the advice at an early stage – before problems become so acute that options are limited.

2. One of your priorities is to better “champion” the profession. Where do you think its value is currently misunderstood by policymakers or the public?

There is a perception that our profession is all about closure or failure, when in reality our focus is on preserving value and achieving the best outcomes for all stakeholders, including employees, creditors and the wider business community.

Part of the challenge is that much of that work happens behind the scenes as it is highly sensitive and we only tend to come into public view when high-profile businesses fail. But for every one of those cases, there are many more where our profession has played a key role in restructuring and turning around a business to ensure it does not reach the point beyond return.

We need to be more visible and more proactive in telling that story. R3 provides a strong platform to do that, through our national and regional committees, policy engagement and by championing our positive impact. During my presidential year, we are planning to launch a new case-based R3 award to showcase real examples of business rescue and turnaround, helping us to bring those successes to wider attention.

3. You’ve highlighted the need for a modern insolvency framework. What specific reforms or gaps in the current regime would you like to see addressed during your term?

This year marks 40 years since the Insolvency Act 1986 and while this legislation fundamentally reshaped restructuring, turnaround and insolvency practice in the UK, we cannot stand still and need to ensure the framework keeps pace with changing business practices, technology and the wider economic environment.

With the support of R3, I’ll be engaging constructively with ongoing reviews of the Insolvency Rules and the Personal Insolvency Framework to ensure they enable innovation while maintaining confidence and integrity in the system. The Insolvency Service is also seeking views on proposals to reform and modernise the corporate civil enforcement regime, including shifting the power to disqualify directors from the courts to the Secretary of State (via the Insolvency Service). This would be a major change and one we are seeking members’ views on before responding.

Overall, I’ll be supporting R3’s work to ensure the Insolvency Rules are made less bureaucratic and more fit for purpose, especially in this challenging economic climate.

4. Political engagement is a key focus for you. How effective has the profession been historically in influencing policy, and what needs to change?

The profession already has a strong and respected voice, and policymakers value the insight we can provide. The breadth of R3’s membership means we can offer a genuinely rounded view of how the system is working in practice.

However, as former MP and restructuring expert the Rt Hon Mark Field emphasised in our session at last week’s R3 Annual Conference, effective engagement with Westminster requires a deliberate and sustained approach. That includes making full use of organisations like R3 to maintain relationships with ministers and officials but also recognising that ministers change frequently and their attention is limited.

One of Mark’s key points was the importance of building relationships beyond the ministerial level by identifying and working with MPs across the political divide while building good relationships, which then provide a platform to explain more about what we do.

With R3’s help, we can strengthen those networks, engage earlier in the policymaking process and ensure our members’ experience consistently informs decisions.

5. You’ve spoken about responsible entrepreneurship. How can the insolvency framework better support risk-taking without encouraging misuse or moral hazard?

A well-functioning insolvency framework should strike a balance between enabling ethical risk-taking while maintaining trust and integrity in the system. We want investors and entrepreneurs to have scope to safely speculate while safeguarding against rash or hazardous behaviour.

Our profession plays a key role in underpinning that balance by ensuring fair treatment of directors, creditors and investors and upholding high ethical standards.

In practice, that means creating a regime that allows viable businesses to be rescued and entrepreneurs to try again, while ensuring there are appropriate safeguards against misuse.

If we get that balance right, we can support innovation and growth while maintaining confidence in the UK as a place to do business.

6. Talent and pipeline are growing concerns across professional services. What is the biggest barrier to attracting new entrants into restructuring and insolvency today?

Two of the biggest challenges are perception and routes into the profession. Many potential entrants don’t have a clear understanding of what we do or the breadth of career opportunities available. Even where awareness exists, there isn’t always a clear route from education into our profession or visibility of members of the profession from diverse backgrounds for whom membership of the profession has led to a rewarding and successful career.

We need to do more to promote the profession to new audiences, for example, encouraging students to consider a career in our area alongside more established career paths such as accountancy, audit or banking.

R3 recently carried out a survey looking at members’ views on routes into the profession and we’ll be drawing up proposals for improvements in this area.

It’s important we continue to address both perceived and real barriers to progression and build a diverse, inclusive profession that reflects the businesses and communities we serve.

7. Technology and innovation are reshaping financial services. How do you expect they will impact restructuring and insolvency work over the next few years?

Technology is already changing the way we work, and that will only accelerate. That change does not, as some speculate, equate to fewer (particularly less experienced) colleagues, but to a better resourced, more agile and more engaged and collegiate cohort.

There is a real opportunity to use technology and AI to improve efficiency, enhance analysis and deliver better outcomes for clients and stakeholders.  At R3’s recent Annual Conference, a delegate poll highlighted that while more members are using AI in their work, many have not yet received formal training and were not aware of clear guidance from employers or regulators.

That underlines the importance of ensuring the profession is equipped to use these tools confidently, responsibly and in line with ethical standards.

8. Looking ahead to the end of your presidency, what would success look like for you, both for R3 and for the wider profession?

Success for me would be making tangible progress in improving the profession’s visibility, diversity and recognition for its positive contribution to the UK economy - whether that’s strengthening our engagement and relationships with ministers and officials, increasing the profession’s presence in the media, or showcasing more real-world examples of business rescue through initiatives like our new case-based award.

However, a year isn’t a long time to be in this role and I’m realistic about what can be achieved in that time. Fortunately, I have a great team at R3, including CEO Caroline Sumner, who will be supporting me in achieving my aims and ensuring continuity beyond my term.

Ultimately, I see my tenure as one stepping stone along the path to ensuring our profession is fit for the next 40 years. That will be a very good outcome!