ICAEW criticises suggestion of single insolvency regulator

THE LARGEST REGULATOR of insolvency practitioners ICAEW has hit-back at government plans to create a single insolvency regulator.

Earlier this week Ed Davey, minister of insolvency, announced that he wanted to bring in a range of more creditor friendly and transparency boosting initiatives. These included reducing the current nine regulators of insolvency practitioners down to just one.

However, the ICAEW has said while it supports the need for greater transparency and the need to improve standards they do not support the creation of a single regulator.

Vernon Soare, ICAEW executive director of professional standards, said: “ICAEW understands the need to continually improve standards and is supportive of any measures that will help to enhance transparency and confidence in insolvency procedures. However, we believe that this is best achieved by effective oversight of the existing regulators.

“In the current climate, we don’t believe the time and cost associated with establishing a new single regulator is feasible. We will therefore continue to work together to achieve the Government’s aims without such radical change.”

Currently there are seven professional bodies including ICAEW, ACCA and ICAS that regulate and licence practitioners. However, the Insolvency Service sits above all the licensing bodies and regulates the professional bodies and licenses practitioners.

Davey also announced he will remove the Insolvency Service’s role as licensor, so it could concentrate purely on regulation, as soon as practicable.

ICAS director of insolvency Ann Condick also welcomed the move to increase transparency and highlighted currently regulators do not take complaints on fee charges by practitioners – something ICAS is hope to change in its procedures.

Earlier this year it was announced that a parliamentary committee will review the role of the Insolvency Service and other measures such as the introductiono of an insolvency ombudsman.