Insolvency Service (National): Edward Davey, BIS Minster, welcomes the OFT report into corporate insolvency

Edward Davey, BIS Minister with responsibility for the insolvency regime, has today (24 June 2010) welcomed the publication of  “The Market for Insolvency Practitioners in Corporate Insolvencies” a report by the Office of Fair Trading.

Commenting on the study Edward Davey said:

“This important report confirms the criticism that insolvency practitioner fees can sometimes be unfairly high, hitting unsecured creditors such as small businesses and employees.

"I will look closely at its recommendations and work with the professional bodies involved to ensure such creditors get a fairer deal in the future.”

The Insolvency Service, which is an executive agency of BIS, has responsibility for overseeing the regulation of insolvency practitioners and will play a lead role in the review.

Notes to editors

1  The OFT report can be read in full at: http://www.oft.gov.uk/news-and-updates/press/2010/67-10

2  The Insolvency Service administers the insolvency regime, investigating all compulsory liquidations and individual insolvencies (bankruptcies) through the Official Receiver to establish why they became insolvent. The Service also authorises and regulates the insolvency profession; deals with disqualification of directors in corporate failures; assesses and pays statutory entitlement to redundancy payments when an employer cannot or will not pay employees; provides banking and investment services for bankruptcy and liquidation estate funds; and advises ministers and other government departments on insolvency law and practice.  Further information about the work of The Insolvency Service is available from http://www.insolvency.gov.uk

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