ICAEW is to take over elements of the regulation of solcitors who act as insolvency practitioners as the Solicitors Regulation Authority (SRA) withdraws from regulation of this sector in a bid to improve consumer protection
The SRA has made the decision on the grounds that insolvency work is not central to the work of a solicitor, and consumers would be better protected if solicitors were regulated by those organisations identified by the Insolvency Service.
Crispin Passmore, SRA executive director, said: ‘Insolvency practice is not integral to the services provided by solicitors, so there is no case for us to regulate in this area. It's also in the public's interests for solicitors providing insolvency services to be regulated by the recognised professional bodies with specialist expertise in insolvency practice.’
The SRA has applied to the government for permission to cease operating as a recognised professional body for insolvency, and Anna Soubry, minister for small business, industry and enterprise has agreed to the request.
The regulatory change should take effect from 1 November 2015.
The SRA says there are currently 129 solicitors operating as insolvency practitioners and it is getting in contact with them to inform them of the decision. Most have agreed to be regulated by ICAEW.
