The review will be led by Professor Elaine Kempson of Bristol University.
Concerns continue to be raised about the charges, including both remuneration and expenses, made by insolvency practitioners (IPs) and the impact that this has on the position of unsecured creditors and personal debtors in insolvency situations. That such concerns exist is not generally disputed; nor would many claim that there have been no cases involving excessive fees. Beyond that, opinion about the extent of unreasonable, or even excessive, fees is divided. So, too, is opinion on the efficacy of the control and redress mechanisms that exist. But the evidence base is thin.
A recent market study conducted by the Office of Fair Trading (OFT), however, concluded that the relatively weak bargaining power of unsecured creditors in insolvency situations can lead to detriment, although the basis for this conclusion has been disputed by the insolvency profession.
We have provided both the overall report to the Insolvency Service and the questions asked by Professor Kempson.