Speaking at the inaugural Insolvency Today Conference at London’s Royal Lancaster Hotel, Ed Davey MP, minister for employee relations, consumer and postal affairs, said the work of the insolvency profession is now more important than ever and warned delegates of the perils of complacency.
He explained: “Overall, the insolvency market works well here and the vast majority of IPs do a good job, but I don’t think we should ever be complacent.
"Not surprisingly, fees remain a sensitive subject and, in your line of work, you will always have to work harder to justify the fees that you charge.
“I recently hosted a round table at the Department of Business, Innovation and Skills and many concerns came out. I solely support a system of self regulation but the profession could benefit from some improvements.”
Davey said now was the time for the industry to show a joined up approach to complaints handling as it was in the spotlight as a result of the current economic climate.
He said: “Consistency is what any regime should aim to deliver. The outcome of a complaint should not differ by regulator. I am looking for a profession that is transparent and accountable. I want a complaints system that is consistent, accessible and fair.
“In corporate insolvency, the industry has been tested by the deepest recession in recent history. Insolvency practitioners play a crucial role in driving confidence in the underlying economy [and can] support growth through corporate rescue and having processes that are predictable.
“Those in business need to know that processes are in place to ensure fairness and that the rogues will be dealt with.”