Minister sets out future direction for reforms of Insolvency Practitioner regulation

20 Dec 2011

The Minister today placed a statement in Parliament setting out a broad direction of travel for reforms to the regulation of insolvency practitioners. This replies to a consultation launched in February 2011.  

The key messages of the statement are as follows:-

• The Minister recognises that a great deal more could be done to improve the effectiveness of the regulatory regime
   
• Support for a single regulator, but preference at this stage is to see the profession make voluntary changes without the need for legislative change – but this remains ‘on the table’ if progress not forthcoming
   
• Reforms needed to complaints handling processes, particularly to include complaints about excessive fees. The Government will explore with interested parties how to achieve this early in the New Year.
   
• Confirms intention for the Secretary of State to withdraw from direct authorisation, reform the powers of the SoS as oversight regulator to make them more wide ranging, and introduce regulatory objectives to the regime. This is all dependent on finding Parliamentary time.
   
• Change to the charging structure of the oversight regulation function, so as to more fairly apportion costs between Regulatory Professional Bodies (RPBs). This is likely to include consideration of a fixed element to the fee.
   
• Indicates that the government does not see a future role for the Insolvency Practices Council  (IPC) and it will be for the RPBs to determine its future. We hope this signal from Government provides clarity.
   

Also issued with the statement was a summary of the responses received to the consultation.

Follow the links to read the full copy of the ministerial statement (DOC, 39 Kb)  and  response document (DOC, 903 Kb) .   

For more information about this and other consultations visit the  Consultations area of the website.