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Insolvency: Companies

Question for Department for Business, Energy and Industrial Strategy

UIN 3793, tabled on 19 May 2021

To ask the Secretary of State for Business, Energy and Industrial Strategy, what recent assessment he has made of the fairness of the level of charges by insolvency firms on (a) business and (b) the public purse.

Answered on

28 May 2021

Insolvency legislation provides that the remuneration and expenses of insolvency officeholders are subject to the approval of creditors, and to the overall control of the court. Creditors have the power to challenge remuneration by application to court.

Statutory objectives introduced in 2015 require insolvency regulators to ensure that Insolvency Practitioners provide high quality services, at a cost to the recipient which is fair and reasonable. A response to the Government’s call for evidence on insolvency regulation, which sought views on the impact and effectiveness of the objectives, will be published later in the year.