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OFT launches insolvency study

Published on 16 Nov 2009 under category: legal

A study into corporate insolvency has been launched by the Office of Fair Trading (OFT) in order to better understand the industry.

The watchdog will look at various aspects of the sector, including how insolvency specialists are appointed, fees and recovery rates for creditors and the overall structure of the market.

In addition, the OFT intends to examine data from law firms, accountancy practices, regulators and trade bodies to better understand the workings of the insolvency sector.

Clive Maxwell, senior director of services at the OFT, said: "We want to identify any potential problems within the corporate insolvency market to ensure that firms and practitioners are competing freely and that the market is working well for the end consumers.

"Efficient insolvency services are an important component of a modern market economy."

The study was launched after concerns were raised over the costs of filing for insolvency and bankruptcy in the UK.

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