News release

SRA consultation on regulation of solicitor insolvency practitioners

We have launched a consultation on a proposal to stop regulating solicitors who act as insolvency practitioners under the Insolvency Act 1986.

We currently regulate 124 solicitors in this way, around 20 of whom take insolvency appointments. The consultation, launched today, Tuesday 18 November, looks at stopping our regulation of insolvency practitioners in order to support regulation of this specialist activity by appropriate regulators.

Our proposal follows initial discussions with the Insolvency Service. Solicitor insolvency practitioners will have the option of being regulated by one of the other insolvency regulation bodies, which include the Institute of Chartered Accountants in England and Wales, the Association of Chartered Certified Accountants and the Insolvency Practitioners Association.

If the proposal goes ahead, we will develop appropriate processes to enable insolvency practitioners to transition to regulation by other appropriate bodies.

Annette Lovell, Director of Regulatory Policy, said: "Our focus is on delivering regulation proportionate to the nature of a firm or individual, the services provided and the risks presented. The regulatory regime for insolvency practice is developing to meet a different set of risks and concerns.

"We already contract out some insolvency regulation activities to the Insolvency Practitioners Association. Our current proposal represents a further step towards proportionate regulation within which solicitor insolvency practitioners can seek regulation from appropriate industry bodies providing for economies of scale and specialist expertise."

The consultation can be accessed here:

Go to the consultation

It closes on 16 January, 2015. 

 
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