The All-Party Parliamentary Group (APPG) on Fair Business Banking, has launched an investigation into the UK insolvency profession.
Joined by the law firm Humphries Kerstetter, the group will support government studies regarding regulation in the industry.
A six month project has commenced with a call for evidence to the main players of the industry, with the APPG also urging any others with information centring around the conduct and standards in corporate insolvency to submit information to the report.
Kevin Hollinrake MP, co-chair of the APPG, said: “A properly functioning insolvency industry is key to any successful economy. In recent years there have been a number of high-profile failures in the insolvency industry.
“The APPG has also received its fair share of complaints about the system. This is why we thought now would be a good time to conduct our review, identify any failures and suggest practical ways they might be addressed.”
The investigation is likely to address the relationship between insolvency practitioners and the lending institutions that appoint them, with the APPG receiving a number of complaints from business owners stating that not enough has been done to protect their companies which have fallen to insolvency.
While James Russell, partner at Humphries Kerstetter, admits that all industries have cases of “companies behaving badly”, the investigation will explore “whether such behaviour is indicative of a wider, systematic problem”.
He added: “If these problems are endemic, we look forward to working with the APPG to find ways to address them for the benefit of the insolvency industry and the wider economy.”