Regulation Of The Insolvency Industry

EDM number 751 in 1997-98, proposed by Austin Mitchell on 05/02/1998.

That this House notes that the current insolvency regulators have failed to maintain the public interest, are controlled by major accountancy firms, have no independence from vested accountancy interests and have neglected the rights and welfare of stakeholders be they bank depositors, pension scheme members, investors, creditors or employees; further notes they have failed to investigate the charging of exorbitant fees by receivers in such cases as BCCI, Maxwell, Polly Peck and others, have failed to investigate the disproportionate time taken to complete receiverships leading to the unnecessary closures of businesses and loss of jobs, the abuse of rules and regulations by major firms, or practitioners' conflicts of interests; believes that the regulators have failed to introduce rules to make licensed practitioners accountable; and therefore urges the President of the Board of Trade to exercise her powers under the Insolvency Act 1986 and transfer the licensing, monitoring, investigative and disciplinary powers currently exercised by eight bodies to a single statute-based regulatory body independent of the insolvency industry to maintain the public interest and make insolvency accountable.

This motion has been signed by a total of 39 MPs.