30m to be saved by Insolvency reforms

0
476

 

A single gateway for complaints against insolvency practitioners (IPs) which makes the process easier and more transparent was announced on wednesday by Business Minister Jo Swinson.

As part of the Insolvency Service commitment to the Red Tape Challenge, the Minister also announced a cut in red tape for businesses, by reducing for example the numbers of meetings that have to be held during insolvency procedures which can drive up costs.

These savings can then be passed onto creditors in an insolvency process. The measures are expected to save over £30m per year and will require legislation.


From Wednesday (5h June 2013), nearly all practitioner complaints will come though a common Complaints Gateway hosted by the Insolvency Service in Leeds, creating a more accessible route for those with a grievance. Previously, complainants would have needed to work out which of the eight relevant authorising bodies to complain to.

“An easy route to complain is important for consumers — especially when they are going through a bankruptcy or have suffered from a company’s failure and they think an insolvency practitioner has not acted correctly,” Business Minister Jo Swinson said.

“This new Complaints Gateway will help consumers dealing with the insolvency industry to get speedier resolution of problems and easier access to the right information. Such problems might, for example, be poor communication by the practitioner or worries about their independence.

“I am pleased that the insolvency profession shares our desire to improve the public’s perception and confidence in the insolvency regime.

“We are also cutting out needless processes. We have listened to the ideas put forward by business and practitioners to cut out unnecessary red tape. These changes will make sure the cost of administering insolvencies will be reduced with savings being passed on to creditors, without removing necessary protections.”

Article score

LEAVE A REPLY