Section 15: Regulatory objectives
This section inserts new Articles 350B and 350C into the Insolvency Order.
These new Articles define the meaning of regulatory functions and regulatory objectives which will apply to recognised professional bodies. At present, these do not exist in law.
The introduction of regulatory objectives will provide recognised professional bodies with a framework within which to carry out their activities. Regulatory objectives are intended to encourage consistency of approach, and to provide a reference point for discussions between insolvency practitioners and recognised professional bodies, and between recognised professional bodies and the Department "oversight" regulator.
New Article 350B sets out that recognised professional bodies must act and carry out their functions in a way that is compatible with the regulatory objectives.
The regulatory objectives are set out in new Article 350C and are intended to ensure that:
the recognised professional bodies have a system of regulating insolvency practitioners that:
delivers fair treatment for persons affected by an insolvency practitioners’ acts and omissions;
reflects the regulatory principles that the recognised professional bodies’ regulatory activities are transparent, accountable, proportionate, consistent and targeted; and
ensures consistent outcomes;
the recognised professional bodies are encouraging an independent and competitive insolvency practitioner profession, whose members deliver high quality services at a fair and reasonable cost, act with transparency and integrity and consider the interests of creditors in the case;
insolvency practitioners seek to maximise returns to creditors and are prompt in making those returns; and
the public interest is protected and promoted during the insolvency process.
