A Licensed Insolvency Practitioner also known as an IP
Licensed Insolvency Practitioners are legally qualified specialists who work with companies and individuals usually, although not exclusively, when they have problems with debt. These professionals, generally known as insolvency practitioners, or IPs, are regulated by the Insolvency Service, an executive agency of the UK Government.
The Insolvency Service operates a strict licensing regime for Insolvency Practitioners. Under this regime, individuals seeking to become Licensed Insolvency Practitioners must meet strict eligibility criteria, demonstrating their competency, integrity, and knowledge of insolvency law and practice. Furthermore, ‘license holders’ are required to undertake continuous professional development to enhance their skills and maintain compliance with evolving industry regulations. Every Licensed Insolvency Practitioner will hold a specific license number and this will tend to be displayed on their paperwork or website. It’s a good idea look for this when selecting a company to help you with debt.
At the heart of the industry is the Insolvency Act 1986, which underpins insolvency proceedings in the UK. The Act sets out the legal framework within which Insolvency Practitioners operate, defining their powers, duties, and obligations. It also established the Insolvency Service, the body responsible for overseeing and enforcing compliance among Insolvency Practitioners.
The Insolvency Service acts as the Independent Regulator of Insolvency Practitioners (IRIP) and plays a pivotal role in maintaining public confidence in the profession. Its primary objective is to ensure that insolvency practitioners adhere to high standards of professional conduct and ethics.
In addition to the Insolvency Service, the United Kingdom has recognised several other professional bodies that contribute to the governance of Insolvency Practitioners. These include the Institute of Chartered Accountants in England and Wales (ICAEW), the Association of Chartered Certified Accountants (ACCA), and the Insolvency Practitioners Association (IPA) all have which have been granted powers to authorise their members to act as insolvency practitioners.
Moreover, Insolvency Practitioners in the UK are subject to rigorous performance monitoring through a process known as “live file reviews.” The Insolvency Service carries out these reviews to examine cases undertaken by an Insolvency Practitioner to ensure adherence to legal requirements and sound professional practices. These reviews aim to identify any patterns of poor practice, thus enabling the regulator to intervene and take appropriate action promptly.
