Deregulation Bil

Written evidence submitted by The Rt Hon Anne McGuire MP (DB 20) 

I have been contacted by a number of Insolvency Practitioners within my constituency who are concerned about the proposals included in the Deregulation Bill to introduce Partial Licences for Insolvency Practitioners.

My constituents do not believe that the introduction of partial licences will have a positive impact on either businesses or individuals seeking financial advice. They are concerned that often the distinction between corporate and personal financial affairs are blurred, particularly with regard to small business, and it is therefore important that IPs are trained in both personal and corporate insolvency.

My constituents are concerned that the proposals will have a negative impact on small and micro firms as the large firms are more likely to take up the partial licences giving them a competitive advantage. They do not think that partial licences will increase competition especially since there have been a number of redundancies in the sector in the last few years.

One of my constituents trained at one of the larger firms but now works as a sole practitioner within the area. They believe that should they have trained for a partial licence it would have had a negative impact on their career and will restrict the opportunities of the younger generation just beginning their career in the profession.

March 2014

Prepared 25th March 2014