- The Insolvency Service’s Chief Executive and its Head of Insolvency Practitioner Regulation spoke at the Insolvency Practitioners Association (IPA) event.
- They discussed research which found a concerning level of poor practice in the Individual Voluntary Arrangement (IVA) market and urged insolvency practitioners to take swift action to address the shortcomings identified.
- The session was part of the Insolvency Service’s ongoing commitment to working with regulators and the wider sector.
Leaders and experts from the Insolvency Service attended this year’s IPA Personal Insolvency Conference in Manchester to discuss the agency’s important work with the sector.
Dean Beale, Chief Executive Officer of the Insolvency Service addressed the delegates, reflecting on the agency’s latest work and research as well as looking ahead to the future of personal insolvency and continued relationships with the IPA and partners.
Addressing the Insolvency Service’s research into the IVA market, which showed a concerning level of poor practice in the area, he said
I’d like to thank the Insolvency Practitioners Association for the important role it has played in improving standards on Individual Voluntary Arrangements, for its innovation in regulating the sector and for the opportunity to discuss this work in more detail.
IVAs are an important part of the personal insolvency landscape, but poor practice is in nobody’s interests, and we all know that it needs to be addressed.
Claire Hardgrave, the Head of Insolvency Practitioner Regulation for the Insolvency Service also spoke at the conference.
She discussed the research commissioned by the agency which highlighted concerns about the way IVAs were being offered to people who signed up to them.
The research analysed randomly selected IVAs which had been both registered and terminated between 2021 and 2023 and found that 60 per cent showed evidence of poor practice in the early stages.
Claire said
There is no doubt that the findings of our independent research raised concerns among many groups within the IVA industry. But it also provides a robust base of evidence to show that real improvements are needed.
I’m hopeful that the findings will provide helpful insight, identifying for insolvency practitioners changes to practice, training and governance that will make a difference to vulnerable consumers.
Marcial Boo, Chief Executive of the Insolvency Practitioners Association, added
We are pleased that the IPA’s benchmark conference on personal insolvency was attended by the Insolvency Service, HMRC, debt advice charities and over 200 insolvency practitioners. As the UK’s only regulator dedicated solely to insolvency practitioners, the IPA promotes high standards across the insolvency profession to ensure that the best advice is provided to those in financial difficulty, and that creditors’ interests are safeguarded in line with the law.
We will continue to work with insolvency practitioners to ensure that IVAs and other available products are used effectively to meet debtors’ needs.
For more information about the research
Insolvency Service research findings into Individual Voluntary Arrangements (IVAs).
