Fines against IPs increase fivefold in 2011

FINES AGAINST INSOLVENCY PRACTITIONERS have increased by more than four times in the last year according to government statistics.

In the latest report from the Insolvency Service, consent agreements and fines against insolvency practitioners increased to 19 in 2011 from four in 2010.

There are seven regulators known as recognised professional bodies in the UK: ICAEW, IPA, ACCA, the Insolvency Service, ICAS, the Law Society and the Law Society of Scotland.

All other parts of regulation in the profession remained constant.

There were six licences revoked in 2011 (the same in 2010); the ICAEW issued two regulatory penalties last year compared to three the year before with no other regulator issuing any; and there were seven reprimands and fines in 2011 and 2010.

The ICAEW excluded and fined one person in 2011 for posssibly bringing discredit to himself, the institute or the accountancy profession. He was declared bankrupt in 2010 and handed a restriction that will see his bankrupty end in August 2026.

Complaints against insolvency practitioners also dropped to 517 from 531 and warnings or cautions, that are not published, declined to 42 in 2011 compared with 60 in 2010.

The IPA managed to turn the tables on their handling of complaints. In 2010 the regulator received seven complaints as to how it handled complaints regarding an insolvency practitioner, with ICAEW receiving two. However, in 2011 it did not receive any complaints of this nature with the ICAEW picking up seven and ACCA one.