The importance of the insolvency industry has been highlighted in recent months, following the failure of several high profile companies in the UK. The responsibility to make sure that companies were rescued where possible, and those that became insolvent fulfilled their obligations to their creditors and consumers, fell upon insolvency practitioners (IPs). IPs had to carry out this work in the full glare of public scrutiny and deliver what were sometimes difficult results.
This and other less high profile, but nevertheless essential, work carried out by IPs is not easy. The work of the insolvency industry has never been more crucial than it is now, as businesses face a very difficult business environment.
The UK has become one of the key jurisdictions in the world for business rescue, as is reflected by consistently being in the World Bank’s top ten ranking of countries to resolve insolvency. The strength of our insolvency regime is a positive for UK Plc.
The Government, through The Insolvency Service, is always considering ways to make the insolvency regime even more robust. We win disqualifications against around 100 rogue directors every month. Every disqualified director represents a £85,000 saving made from preventing future financial harm to the public.
The efficiency with which practitioners turn around detailed D1 reports should also be noted. In a profession with 1,700 members, there will obviously be a variation in the quality of these reports but The Insolvency Service continues to work withh practitioners to spread good practice and improve the quality of these reports. The evidence they provide forms the basis of every investigation carried out by The Insolvency Service that ends in an eventual disqualification.
None of this essential work would be possible without IPs.
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