Despite considerable opposition to the proposal, the board of the Solicitors Regulation Authority (“SRA”) has resolved that, as of 1 November 2015, it will cease to regulate insolvency practitioner solicitors (“IP solicitors”) in respect of the insolvency work they carry out.
At the SRA’s meeting on Wednesday 11 March, it was decided that, given the disparity between insolvency work and the work of a solicitor, the public would be better served if IP solicitors were regulated by the recognised professional bodies with specialist expertise in insolvency.
Providing it is in agreement with the SRA’s decision, the Insolvency Service will put before the Secretary of State an order to remove the Law Society’s status as a recognised professional body, which currently enables the SRA to authorise and regulate its members as insolvency practitioners. The SRA will also have to apply to the Legal Services Board to revoke the Insolvency Practice Rules 2012 and to amend the relevant regulatory arrangements.
For further information regarding this topic, or any other insolvency and restructuring matter please contact a member of our Insolvency & Restructuring team.
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