What is an insolvency practitioner (IP)?

An insolvency practitioner is someone who is licensed and authorised to act in relation to an insolvent individual, partnership or company. Most IPs are accountants or insolvency specialists working in firms of accountants.

An IP must hold a licence and have:

• passed the insolvency examinations (JIEB exams);
• gained experience in insolvency work; and
• satisfied an authorising organisation (also known as regulator) that they are fit and proper to act as an insolvency practitioner (IP).

Insolvency practitioners must follow the law and their work is monitored by regulators to make sure that they do. ICAEW is the largest single regulator of insolvency practitioners in the UK. We monitor our licence holders to make sure that they continue to be fit to carry out insolvency work.

What does an IP’s job involve?

IPs are appointed to sort out difficult situations. In some cases, their main task is to try to rescue a business.

If it is not possible, the IP aims to:

• sell the assets of the person or company who owes money;
• collect money due to the person or company;
• agree creditors’ claims; and
• distribute the money collected after paying costs.

The IP’s work involves dealing with many competing interests, but usually their main duty is to look after the interests of creditors. Although creditors can give details of their claims, IPs will not agree the claims until they are sure that funds will be available.

In some cases, the IP will give advice to a debtor immediately before a formal insolvency process begins.

How can I complain about an IP?

Before making a complaint about an IP, you should contact the IP direct. Concerns often arise as a result of misunderstandings about the IP's role and it is always best to try to raise these with the IP.

If you are unable to resolve your complaint with the IP, you may want to take your complaint further with the IP's authorising body. In the UK this will be one of the following:

• The Institute of Chartered Accountants in England and Wales;
• The Institute of Chartered Accountants of Scotland;
• The Chartered Accountants Regulatory Board (for CAI);
• The Association of Chartered Certified Accountants;
• The Insolvency Practitioners Association;
• The Insolvency Service;
• The Solicitors Regulation Authority of the Law Society; or
• The Law Society of Scotland.

Each regulator handles complaints about its own licence holders. However, this role is limited because some matters can only be decided by a court. Details of an IP's licensing body will generally be included on their notepaper.