In response to the Government’s announcement of major reforms to the regulation of the insolvency sector, Dr Roger Barker, Director of Policy at the Institute of Directors, said:
“We welcome plans to simplify and enhance the oversight of the insolvency industry. Although corporate insolvencies remain at relatively low levels, this environment could easily change as firms grapple with renewed restrictions and rising levels of corporate indebtedness.
“Insolvency is a process of great sensitivity and consequence for directors. Some insolvency procedures, like pre-pack administrations, can be controversial if they are not implemented with necessary levels of transparency and justification. The whole system depends on high standards of conduct, integrity and fairness being demonstrated by insolvency practitioners.
“It is an opportune moment, therefore, to bring the current insolvency framework up-to-date and ensure that appropriate levels of accountability are defined for insolvency firms.”