The employment minister called for a more "transparent, consistent, accessible, independent and accountable" system.
It comes after the Insolvency Service (IS) published the responses to its consultation on the proposed reforms to the current structure.
The three-month process – which was launched in February - invited views on whether the creation of an independent complaints body would improve confidence in the handling of complaints and appeals.
Some 55 answers were received by the IS, and according to the consultation, many IPs were ‘generally not persuaded that fundamental changes to the present regime are justified’.
However, Davey explained: "Responses to the consultation and subsequent discussions I have held with stakeholders have indicated strong support for an independent single regulator for insolvency practitioners as an effective and efficient way of achieving these aims.
"I can see the merits of this and we have not ruled out moving to this."
Davey explained the IS intends to bring forward proposals to remove the Secretary of State from the process of authorising IPs.
He also set out plans to cut down the current role of the Insolvency Practices Council (IPC).
He said: “The Government is grateful for the useful contributions made by the IPC, but agrees with responses to the consultation which indicate that there is no longer a need for an additional body of this sort and its functions would be better placed elsewhere within the regulatory and policy structure.”
The spring consultation also asked whether the proposed independent body should have the power to review fees and put forward four different models for the organisation.
It came after a separate study by the Office of Fair Trading (OFT) published in June 2010 found the current framework suffered from a lack of trust.
By Andy Pearce