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21 Dec 2011
INSOLVENCY MINISTER Ed Davey has called for a single regulator of the profession in a speech to parliament.
The suggestion was made following a recent consultation on reforms to the regulation of insolvency practitioners, based on an Office of Fair Trading investigation into the industry.
Further reading
Currently there are nine professional bodies including ICAEW, ACCA, CIPFA, ICAS and CIMA that regulate and licence practitioners. However, the Insolvency Service sits above all the licensing bodies and regulates the professional bodies.
Under planned changes there could be a single regulator of all practitioners.
"The present regulatory regime is a complex one involving a number of different regulators," he said.
"...Responses to the consultation and subsequent discussions I have held with stakeholders have indicated strong support for an independent single regulator for insolvency practitioners as an effective and efficient way of achieving these aims.
Insolvency trade body R3, which represents more than 90% of UK's practitioners, welcomed the move.
"The insolvency profession looks forward to working with the minster to consider an independent single regulator while strengthening and simplifying processes for handling complaints," said R3 president Frances Coulson.
"We share the Minister's aim to ensure the regulatory regime is transparent, consistent, accessible, independent and accountable."
However, Coulson added overall the UK insolvency regime did not need radical reform.
Davey also announced he would remove the Insolvency Service's role as both licenser and regulator of practitioners as soon as possible.
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Visitor comments Add your comment
The new regulator should be armed
A single body is a good idea but it must be comprised of vertebrates who can function at least at the level of Janet and John go to Ethics. They may need live rounds to keep in check the invertebrate morally incontinent purveyors of pre-packs who cannot spot fraudulent/wrongful trading from 10 centimeters away. One body should avoid the natural urge to reproduce. The Legal Services Board is a great example of how not to do it.
Posted by: Jack Harper, 21 Dec 2011 | 12:00
Single Regulator
I have been advocating a single regulator for the last 15 years. I does not make sense to have 9 different regulators as each one will have their own compliance and disciplinary rules which is confusing and unhelpful.
I do believe however that the Insolvency Service should be the overall regulator, which would be paid for by a levy from each and every insolvency case. No one can be more professional or independant than the Insolvency Serrvice.
Posted by: David Rubin, 21 Dec 2011 | 12:29
Why only insolvency
Why only insolvency. What about Audit as well after all the frauds happening.
Posted by: Suleman Khan, 22 Dec 2011 | 04:06
Insolvency problems
Ed Davey needs to firstly sort out the problems within the Insolvency Service who at the moment cannot do a thing right. They need to reduce fees and stream line their policies so members of the public can understand it easily. 2012 will see a big rise and jump in personal bankruptcy in the UK, and if these problems are not sorted then the Insolvency Service will face big problems and a very big up hill battle...
Posted by: Darren, 22 Dec 2011 | 11:46
Singe regulator is not the preferred solution
Reading the whole of Ed Davey's statement on reforming regulation of the insolvency profession, it's clear that moving to a single regulator is not his preferred solution. Whilst he says taht he can "see the merits of this" and has consequently not ruled it out, he clearly states that he wishes “to work with the profession and interested parties to see if there is a way to reform the system so that it delivers better against our objectives without such significant change”.
At ICAEW, we are fully supportive of going down this route and are already engaged in conversations with the Insolvency Service to explore what can be done to deliver the minister's ultimate goal of "a regulatory regime that is transparent, consistent, accessible, independent and accountable."
Posted by: Simon Thompson, 22 Dec 2011 | 15:02
Aboit time
This is something that many older practitioners have been requesting and advocating for years. The existing professional bodies can now concentrate on looking after their members interests.
Posted by: David Mond, 30 Dec 2011 | 15:18
The Untouchables
The Insolvency Service really needs to take a long hard inward analysis of itself with its god like attitude, boastful immortality and seriously assess it's own conscience and core principles of morality, ethics, due care & fairness. It is only a matter of time before Insolvency Practitioners receive a long overdue comeuppance unless fairness is addressed to all parties & they become fully accountable for their actions. Not just their own silver lined coffers or creditors but considerations for the bankruptee and those who are innocent bystanders with beneficial interests in any estate yet are disgracefully treated by Insolvency Practitioners as collateral damage. Sooner or later this whole practice will become more viral and the limelight will be upon them for all the wrong reasons in order to rewrite draconian, biased & prejudiced rules they hide behind.
Posted by: Victor, 16 Mar 2012 | 20:47