The Insolvency Service has called for discussion and consultation on the current regulatory framework for insolvency practitioners (IPs) in the UK.

This starts the process to inform government as to whether or not the statutory regulatory objectives, which were introduced almost four years ago by the Small Business, Enterprise and Employment Act 2015 (SBEE Act), have had their intended impact, or whether there is a need for further changes to be made to the regulatory landscape.

​Following on from 2015 legislation

In October 2015, the SBEE Act introduced a number of significant changes to insolvency law, practice and the regulation of IPs. These included:

• the introduction of regulatory objectives for insolvency regulators, which apply to the Recognised Professional Bodies (RPBs) and the Secretary of State, as oversight regulator
• powers for the Secretary of State to take action against RPBs and – where it is in the public interest – against insolvency practitioners directly
• changes to the way that some insolvency practitioner fees and expenses are communicated and agreed with creditors

The 2015 legislation also included a provision allowing the Secretary of State to create a single, independent regulatory body for IPs, should it be considered appropriate. This would replace the current system – which sees a number of RPBs authorise and regulate the IP profession. This option to create the new regulatory body expires in October 2022.

The consultation is calling for responses from all interested parties and stakeholders, including insolvency practitioners, Recognised Professional Bodies, trade bodies, creditors and their representatives, and debt charities.

In addition to submissions by email or post, the Policy Team are available, by written request, to discuss evidence and experiences of IP regulation directly with respondents.

Ways to respond:

Interested parties can reply by email: IPregulation.Review@insolvency.gov.uk

Or in writing to: Judith Marsden, The Insolvency Service, Policy Team, 4 Abbey Orchard Street, Westminster, London SW1P 2HT

A response form can also be found in Annex 3 of the consultation document (p23)

The consultation closes at 11:45pm on 4 October 2019.

See also:

The Insolvency Service Review of IP regulation – call for evidence

Image: The Insolvency Service - © Crown copyright