The service denied the appeal amounted to a ‘put up or shut up’ warning.
But a spokeswoman said: ‘It’s not acceptable for people to just say the system’s not working without taking action.’
She called on IPs to report anyone using the procedure, in which companies are put into administration purely because they can then be placed in liquidation without a traditional creditors’ meeting being held.
Despite much talk within the profession, the insolvency service has yet to receive a report of the abuse.
But Stephen Hunt, president of the Insolvency Creditors Association, said: ‘The new rules only came into force in September and it’s going to take some time for information to come out as to why a certain procedure was chosen.’
The insolvency service said that if reports were made, unscrupulous IPs could ultimately lose their licences. Malpractice complaints concerning IPs can be emailed to Ippolicy.email@example.com.
The second largest improvement in ‘significant’ levels of financial distress since the EU Referendum was in professional services, found research from Begbies Traynor
Steve Absolom and Will Wright from KPMG Restructuring have been appointed joint administrators to City Motor Holdings and associated companies
Partners from Johnston Carmichael have been appointed as joint administrators to Axon Well Interventions Products UK
Begbies Traynor have been appointed administrators of William Anelay Ltd, York, one of Britain’s longest-established construction and heritage restoration companies