There is no doubt that the rise in insolvencies during the recession has put insolvency practitioners under the spotlight. It is little wonder therefore that the profession has come under closer scrutiny. However, the results of the Government consultation on the regulation of insolvency practitioners has revealed a system that works, which reflects a profession that does a good job often in difficult circumstances.
ICAEW understands the need to continually improve standards and is supportive of any measures that will help to enhance confidence in insolvency procedures. However, we believe that this is best achieved by effective oversight of the existing regulators.
In Edward Davey's statement it's clear that moving to a single regulator is not his preferred solution. Whilst he can "see the merits of this" and has consequently not ruled it out, he clearly states that he wishes “to work with the profession and interested parties to see if there is a way to reform the system so that it delivers better against our objectives without such significant change”.
At ICAEW, we are fully supportive of going down this route. In the current climate, we don’t believe the time and cost associated with establishing a new single regulator is feasible. We will therefore continue to look for a solution that achieves the Government’s aims without such radical change. We are already engaged in conversations with the Insolvency Service to explore what can be done and will continue to work in partnership to deliver the minister's ultimate goal of "a regulatory regime that is transparent, consistent, accessible, independent and accountable".