Business minister Jenny Willott has announced a series of measures to strengthen regulation of the insolvency profession, in response to a Government consultation.
Launched in February, the ‘Strengthening the regulatory regime and fee structure for insolvency practitioners’ consultation sought to improve confidence in the industry and tighten regulatory supervision.
The proposals include new regulatory objectives and stronger powers for the Insolvency Service as oversight regulator, designed to “give greater confidence for suppliers, consumers and small business that they will get a fair deal in the event of insolvency.”
Measures put forward include the introduction of regulatory objectives, to increase the power of the oversight regulator to sanction other regulators, and the option of replacing the regulators with a sole regulatory body.
Willott said: “We recently consulted on changes to strengthen the regulatory regime for the insolvency profession to improve public confidence in the system. For the first time, regulators will have a clear statutory framework they must follow backed by sanctions for noncompliance.
“I am pleased to see that there was widespread support.”
The Government response also included Teresa Graham’s report on pre-pack administrations-.
The measures will be brought forward “when Parliamentary time allows”.