The UK’s largest regulator of IPs urged the government to boost transparency and confidence in insolvency procedures without resorting to such a “radical change”.
It comes after the employment minister Edward Davey MP admitted he could “see the merits” of creating a single regulator for the industry.
Currently there are nine regulators, such as the ICAEW, ACCA and ICAS which all serve to monitor the profession.
And the ICAEW’s executive director of professional standards, Vernon Soare, insisted: “ICAEW understands the need to continually improve standards and is supportive of any measures that will help to enhance transparency and confidence in insolvency procedures.
“However, we believe that this is best achieved by effective oversight of the existing regulators.
“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 work together to achieve the government’s aims without such radical change.”
The publication of the Insolvency Service’s summary about the proposed industry reforms appeared to reveal a significant difference of opinion between IPs, regulators and creditors.
While creditors argued a single regulator would be “the most effective way to address many of the concerns identified”, IPs and regulators were “generally not persuaded” fundamental changes were necessary.
And Soares added: “The rise in insolvencies during the recession put insolvency practitioners under the spotlight so it is little wonder the profession has come under closer scrutiny.
“However, the results of the government consultation reveals a system that works, which reflects a profession that does a good job often in difficult circumstances.”