Credit, Collections & Insolvency News
The Insolvency Service has issued a reprimand against the Institute of Chartered Accountants in England and Wales (ICAEW) for regulatory failings.
ICAEW is one of the four Recognised Professional Bodies which regulates licenced Insolvency Practitioners in Great Britain. The reprimand relates to failures by ICAEW after restrictions were imposed on Adrian Duncan, an Insolvency Practitioner based in London.
Duncan was prohibited from taking on any new insolvency appointments, but ICAEW was found to have failed to monitor whether Duncan was adhering to these restrictions, nor did it take steps to ensure that any estate funds Duncan was managing were subject to the appropriate financial controls. It is understood that Duncan has absconded having misappropriated nearly £4 million in estate funds.
Claire Hardgrave, Head of Insolvency Practitioner Regulation Section at the Insolvency Service, said “We take the integrity of the insolvency regime and regulation of Insolvency Practitioners extremely seriously. While the vast majority of licensed Insolvency Practitioners work to a high standard, where failings are identified and there is wrongdoing we will not hesitate to act.”
“The public needs to have confidence in the regulatory regime, and it is important for lessons to be taken from this case.”
The reprimand was delivered in accordance with Sections 391J and 391K of the Insolvency Act 1986, after the Insolvency Service identified the failings by ICAEW.
