Reforms to insolvency processes
The Government intends to improve public confidence in the insolvency profession and modernise the insolvency process by introducing a package of measures that come into force on 1st October 2015.
In summary these will:
- reform the way insolvency practitioners gain authorisation to practice
- simplify when to report to creditors about appointing and releasing administrators
- strengthen the regulation of insolvency practitioners and the Government’s role as oversight regulator in the sector
- introduce a requirement to get an up-front estimate of fees agreed by creditors when an insolvency practitioner wishes to operate on a time and rate basis. Any subsequent variation to this estimate must also be agreed by creditors.
The changes are being introduced following the passage of the Deregulation Act 2015 and the Small Business, Enterprise and Employment Act 2015 which received Royal Assent in March.