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An Overview of Insolvency Practitioner Services in the UK

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Simple Liquidation
An Overview of Insolvency Practitioner Services in the UK

As of 2021, there are around 1,600 licensed insolvency practitioners (IPs) in the UK; that doesn’t include the thousands of support staff in the background that help every single one of the UK’s IP in providing comprehensive, professional and highly-experienced insolvency practitioner services for businesses and individuals across the country.

But what is involved in delivering insolvency practitioner services and exactly what services do IPs provide? Let’s take a deeper look into the role of an IP.

What is an insolvency practitioner?

Let’s start with an explanation of what an insolvency practitioner is – it is someone that is qualified, licensed and authorised to act on behalf of a person, partnership or company that is either insolvent, as well as a solvent company. Insolvency practitioners generally work within a law firm, an accountant or a specialist insolvency practice.

To practice as an IP, they must:

  • Have passed the relevant insolvency, or JEIB (Joint Insolvency Examination Board), exams.
  • They must be licensed with one of the UK’s insolvency practice governing bodies, such as the Insolvency Practitioners Association (IPA) or R3.
  • They have to have sufficient experience in handling insolvency work.
  • They have to not only meet the regulator’s strict requirements but also prove they are ‘fit and proper’ to act as an IP.

The ICAEW (Institute of Chartered Accountants in England and Wales) is the largest regulator in the UK. When an IP is licensed with a regulator, they have been given the authority to advise on and take on IP appointments in formal insolvency procedures, such as voluntary and compulsory liquidations, company administrations and receiver-ships, bankruptcy and individual voluntary arrangements, as well as solvent liquidations, i.e. closing a solvent company.

 

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