Review of the Corporate Insolvency Framework consultation

During May to July earlier this year, The Insolvency Service held a consultation on the reform of the UK’s insolvency regime and has now published a summary of the responses.

The Government sought opinion from a wide range of organisations and stakeholders and received a mixed response. The government will use the responses obtained in the review from such bodies as, R3, the Turnaround Management Association, the Insolvency Lawyers Association, and the City of London Law Society as well as other organisations such as the PPF and the British Property Federation to help shape its future policy.

As expected the wide range of stakeholders consulted provided an equally wide range of opinions. Generally The Insolvency Service reported that the Government’s exploration of the reforms was largely welcomed. However, a wide range of views were expressed on the suitability of the proposals and some concerns raised about the technical details.

The Government  have said they will take into account all the responses to the consultation and continue to liaise with Stakeholders while considering policy options and refining their proposals.

As with most policy changes it would been unlikely that all involved would agree on the suitability of the proposal but moving forward from draft to new policy, it would be wise for the Government not just to simply acknowledge the views of the industry experts but to act on them to giving further thought to the proposals, refining them or even scrapping some as necessary.

We watch with baited breath on The Insolvency Service’s next move.