The Bill proposes new rules governing insolvency practitioner regulation. Extensively rewritten by the select committee to require all insolvency practitioners to be licensed by the Registrar of Companies instead of, as in the original, giving the Registrar power to restrict or prohibit individuals from providing corporate insolvency services. The committee also recommended the bill clarify definition of “fit and proper” practitioners. First reading August 2010, select committee report back May 2011, second reading Nov 2013, awaiting clause-by-clause debate. On June 28, 2018, the Bill was discharged and referred back to the Economic Development, Science and Innovation Committee for new Government amendments. These introduce a licensing regime for liquidators, administrators and receivers of failed companies. This would replace a registration regime, which was itself a step up from an initial proposal to exclude incompetent and dishonest practitioners via a negative licensing system. Reported back on Dec 17, 2019 most of the Government’s amendments remain intact, but there are numerous changes in an attempt to reduce the more onerous provisions, in particular around solvent liquidations. MPs completed consideration of the second select committee report on the recommitted Bill on April 11 with all parties indicating support for the revisions. Select committee stage completed on May 29 with a number of amendments made. This included funding the regulatory regime through an increase in company fees paid to the Companies Office. All parties in support. Third reading completed on June 12.

Insolvency Practitioners Bill