BusinessBusiness RecoveryGovernment announces further plans to streamline insolvency

Government announces further plans to streamline insolvency

Insolvency Service to hand over regulation of practitioners to an institute and reveals shorter study and exam periods for students

Government announces further plans to streamline insolvency

THE GOVERNMENT has announced plans to further streamline the insolvency profession.

Business Minister Jo Swinson (pictured) has revealed that the Insolvency Service, the regulator of the profession and a licensor, will no longer license individual practitioners.

This comes weeks after complaints about practitioners were streamlined to a single gateway rather than complaints having to be filed with one of the eight recognised professional bodies (RPBs).

Currently the Insolvency Service licenses about 60 practitioners, however, under the new plans those licences will be transferred to one of the RPBs which includes the ICAEW, ACCA, ICAS and IPA.

The Insolvency Service has not yet announced which institute will take over the 60 practitioners although a deal is to published in the coming weeks.

Swinson said: “Transferring the government’s power to regulate IPs to independent regulators will bring greater clarity and consistency to the regulatory regime. It will also help cut costs in the industry through lower fees.

“The government can now concentrate on its role as oversight regulator of the insolvency industry.

Swinson also revealed that students entering into the profession can now specialise in one area of insolvency, personal or corporate, rather than having to study and sit both exams over two to three years.

Students will now have the option of studying for one to two years in either corporate or personal insolvency or can continue to under the old regime of leaning both.

“Removing the requirement for IPs to be qualified in both personal and corporate insolvency will open up the industry to a greater number of people, which will provide a welcome boost for competition in the sector,” said Swinson.

The reforms are part of the government’s red tap challenge which removes unnecessary functions from regulation.

Related Articles

Director banned for failing to keep proper accounting records

Business Recovery Director banned for failing to keep proper accounting records

1y Richard Crump, Writer
Interview: R3 president Andrew Tate

Business Recovery Interview: R3 president Andrew Tate

1y Chris Warmoll, Writer
Insolvency Service to probe BHS director behaviour

Business Recovery Insolvency Service to probe BHS director behaviour

1y Chris Warmoll, Writer
Company and personal insolvencies sink to pre-recession lows

Business Recovery Company and personal insolvencies sink to pre-recession lows

2y Richard Crump, Writer
Government to improve insolvent redundancy consultations

Business Recovery Government to improve insolvent redundancy consultations

3y Richard Crump, Writer
Corporate and personal insolvencies fall, latest figures reveal

Business Recovery Corporate and personal insolvencies fall, latest figures reveal

2y Chris Warmoll, Writer
113,000 businesses owed money by insolvents in 2015

Business Recovery 113,000 businesses owed money by insolvents in 2015

2y Chris Warmoll, Writer
Administrations ‘flat-line’ as personal insolvencies hit low

Business Recovery Administrations ‘flat-line’ as personal insolvencies hit low

2y Richard Crump, Writer