Radical reforms to the system of complaints against Insolvency Practitioners are on the way following an announcement by Business Minister, Jo Swinson.
The changes are aimed at making the complaints procedure simpler, quicker and more transparent, as research found the current system to be inconsistent and inaccessible for complainants. The current format of making a complaint in writing to the professional regulatory body to
which the IP belongs, will be replaced by a ‘Complaints Gateway’, operated by the Insolvency Service.
A guidance framework for sanctions placed on IPs following an upheld complaint will be published, and any sanctions applied will be published
online by the Insolvency Service, underscoring the reforms focus on consistency and transparency. The insolvency industry is set to come under further scrutiny, following the appointment of Professor Elaine Kempson from the University of Bristol to lead a review on fees charged by insolvency professionals. The review will expand on recent research carried out by The Office of Fair Trading which encompassed the views of
creditors and directors of liquidated limited companies. The report uncovered concerns that IP fees did not offer ‘value for money’ in many cases that were investigated.