Complying with the letter of the law

Are insolvency practitioners highly regulated and vetted?

The answer is an unequivocal “yes” – and rightly so.

This question crops up from time to time and was triggered again recently, when a ban was handed out to an unlicensed practitioner. It’s not for me to comment on individual cases, but you can read more at:

Maximum 15-year ban for fake insolvency practitioner – GOV.UK (www.gov.uk)

Looking at the wider issue, the industry is regulated carefully and insolvency practitioners are trained to industry standards. In the same way that you’d confirm an accountant or solicitor’s credentials, it’s always a good idea to check us out!

A good starting place is the Insolvency Practitioners’ Association (IPA), of which I am a member.   This organisation regulates individuals under insolvency and anti-money laundering laws and works to raise professional standards through training, benchmarking, networking and best practice sharing.

The IPA was formed in 1961 as a discussion group of accountants specialising in insolvency. Over the early years, it grew in numbers and stature as the body of the insolvency profession. It was incorporated under its present name in 1973.

During the 1970s and early 1980s, as insolvencies increased and more people were appointed as as trustees and liquidators, concerns emerged about the activities of a small number of them. In turn, this impacted on the profession and its reputation.

Those concerns were looked into by a Government Committee chaired by Sir Kenneth Cork as part of a wide ranging review of the insolvency framework; and it led to a recommendation, enacted in the Insolvency Act 1986, for a statutory authorisation regime for practitioners.

For more information, and details of qualifications and professional training, please see:

About the IPA | Insolvency Practitioners Association (insolvency-practitioners.org.uk)

If you have any queries about this blog, or require professional advice, please contact me via phone or email:

Contact – CB Business Recovery (cb-br.co.uk)