“As the largest insolvency regulator in the UK we agree that reform is long overdue and while we welcome most of the Government’s proposals to reform the insolvency regulatory framework, we are disappointed at the recommendation to transfer regulatory responsibilities from the professional bodies to a new single regulator.
“The biggest problem with the current framework is not the identity of the enforcing body but the regulatory framework itself, which is focused on the regulation of individual IPs and so prevents complaints - and substantial penalties in cases of misconduct – to be brought against firms.
“In our view the creation of a single regulator is both unnecessary and potentially damaging to the UK’s insolvency and restructuring profession, and we look forward to explaining why in our response.’’