Insolvency body 'needs to reform disciplinary structures'

Published on 21 May 2010 under category: legal

The Insolvency Service needs to reform its disciplinary structures to fall into line with other licensing organisations in the sector, according to one of the big four practitioners.

An investigation by the Office of Fair Trade (OFT) into the insolvency sector found that the Insolvency Service is failing to address complaints about its insolvency practitioners.

Speaking to Accountancy Age, one of the big four insolvency practitioners said that the lack of disciplinary structures was unfair to other organisations which disciplined its members.

The Insolvency Service claims to be powerless to penalise members unless they want to renew their license, according to the magazine.

The OFT report, released last week, is the result of a four-month investigation into the sector.

It was initiated because of the huge rise in corporate insolvencies, during the recession.

Criticism was leveled at the four big insolvency practitioners – KPMG, Deloitte, Ernst & Young and PricewaterhouseCoopers – for charging huge fees and only recovering small amounts from creditors.

If you require advice on Insolvency and Bankruptcy please call us on +44 (0)20 7831 0101 and ask for Katherine Sillett.