Modernising and strengthening insolvency processes

18 Sep 2015 10:54 AM

To improve public confidence in the insolvency profession and to modernise the insolvency process a package of changes come into force on 1 October 2015.

In summary the changes:

• reform the way insolvency practitioners gain authorisation to practice
• simplify when to report to creditors about appointing and releasing administrators
• strengthen the regulation of insolvency practitioners and our role as oversight regulator in the sector
• introduce a requirement to get an up front estimate of fees agreed by creditors when an insolvency practitioner wishes to operate on a time and rate basis. Any subsequent variation to this estimate must also be agreed by creditors.

The changes are being introduced following the passage of the Deregulation Act 2015 and the Small Business, Enterprise and Employment Act 2015 which received Royal Assent in March.

We have sent a special edition of Dear IP, our quarterly technical newsletter, to insolvency practitioners setting out these changes in more detail. If you have not received this newsletter or would like a copy please contact: Dear.IP@insolvency.gsi.gov.uk.