Insolvency Service launches consultation on proposals for reforming the regulatory framework for Insolvency Practitioners

The Insolvency Service (IS) has launched a consultation on proposals for reforming the regulatory framework for Insolvency Practitioners. See hereThe consultation seeks views on proposals put forward by the Office of Fair Trading (OFT) in their report “The Market for Insolvency Practitioners in Corporate Insolvencies”. Mr Edward Davey MP, BIS Minister with responsibility for the insolvency regime launched the consultation with the following statement:

“The helpful report published by the OFT in June last year recommended to Government a number of changes to the corporate insolvency regime to ensure that insolvency practitioners deliver the best possible outcome to all creditors.  

“The consultation I am launching today includes proposals for an independent complaints body, and is of great significance to all those who are affected by the insolvency regime.  Now is your opportunity to comment on how we can ensure that unsecured creditors get a better deal when companies go under.”
As the IS note, "The Government are broadly supportive of the majority of the recommendations made in the OFT report which focussed on the market for corporate insolvency.  However, as the regulatory framework applies to all regulated insolvency procedures, the consultation in effect seeks views on both the personal and corporate insolvency market. The consultation considers three main issues to address the problems associated with the weak position of unsecured creditors:- 

Establishing an Independent Complaints Body, including dealing with fees;
Reforming the regulatory framework;
Detailed amendments to legislation relating to administration and liquidation.

The consultation will run from 10 February 2011 to 06 May 2011." There are 36 questions in the document. Happy reading! 

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