SRA to stop regulating insolvency practitioners
The Board of the Solicitors Regulation Authority (SRA) has announced that as of 1 November 2015 the SRA will no longer regulate solicitors who act as insolvency practitioners.
The SRA have taken the view that insolvency work is not central to the work of a solicitor and that consumers would be better protected if the 129 solicitors operating as insolvency practitioners were regulated by those organisations identified by the Insolvency Service.
Although opposed by insolvency practitioners themselves, the SRA will now apply to the Legal Services Board (LSB) to revoke the Insolvency Practice Rules 2012 and to amend the necessary regulatory arrangements. If it agrees with the proposal, the Insolvency Service will lay an order before the Secretary of State for the Law Society’s Recognised Professional Body status to be removed.
The SRA is contacting solicitor insolvency practitioners to inform them of the decision.