Key findings from the Insolvency Service regulation review

15 July 2026

The publication of the Insolvency Service's Annual Review of Insolvency Practitioner Regulation 2025 provides an opportunity to reflect on how the UK's insolvency regulatory system is performing.

The report demonstrates that the UK's insolvency profession continues to operate to high professional standards, supported by a robust regulatory framework. This helps maintain confidence among creditors, businesses and the public.

The review found there were 1,480 authorised insolvency practitioners on the registers of the RPBs in 2026 including 1,262 appointment taking practitioners able to accept formal insolvency cases like liquidations, administrations or bankruptcies.

While complaints made to the Insolvency Services’ Complaints Gateway increased, only 17% were referred for further investigation because they fell within the Gateway’s remit and raised potential regulatory concerns. This is down from around 22% in 2024.

Comprehensive regulation

The Insolvency Service regulates the profession's three Recognised Professional Bodies (RPBs) which are the Insolvency Practitioners Association (IPA), the Institute of Chartered Accountants in England and Wales (ICAEW) and the Institute of Chartered Accountants of Scotland (ICAS).

Insolvency practitioners (IPs) operate within a comprehensive professional framework. They are subject to regular monitoring visits from their RPB to establish that they are adhering to the legislation and to accepted standards such as Statements of Insolvency Practice (SIPs), the Insolvency Code of Ethics (the revised version of which came into effect in October 2025) and the relevant rules and regulations of the authorising bodies.

Any complaints about the conduct of an IP are handled initially by their RPB, but complainants can also refer an issue to the Insolvency Service for a final decision if they are unhappy with the RPB's investigation and response. Sanctions against IPs who are found to have contravened regulations range from fines to the loss of their licence to practice for the most serious cases.

Serious failings are rare

The review reveals that there has been a 47% increase in complaints, rising from 656 in 2024 to 966 in 2025. However, set against more than 148,000 personal and corporate insolvencies during the year, that represents a complaint rate of just 0.6%.

Although hundreds of complaints are received each year, only a small proportion are referred to the RPBs for investigation and fewer still result in disciplinary action.

Just 166 complaints were deemed appropriate for referral to the RPBs last year. The remaining complaints are either ongoing, closed or rejected for referral to the RPBs. Over half of complaints were closed because the complainant was asked to raise the issue directly with the IP in the first instance. A third of those rejected related to the effect of insolvency, while a fifth were because the complaint related to a commercial matter.

Reasons for complaints

The main reasons for those complaints referred to the RPBs were communication breakdown (37%), competence and due care (26%), SIP 3 relating to individual and company voluntary arrangements (18%), SIP 1 relating to fundamental principles (5%) and behaviour (4%).

The most common insolvency procedures involved were individual voluntary arrangements (45%), liquidation (30%), administration (13%) and bankruptcy (10%).

Most referred complaints were made by debtors and creditors (34% each), directors (10%), employees (5%), debtor’s friend or family (5%) and another insolvency practitioner (4%).

Learning from the findings

The findings suggest that non-compliance remains uncommon, with the vast majority of IPs meeting expected professional standards.

They also reinforce the importance of clear communication and diligent case management. IPs can reduce the risk of complaints by managing expectations, keeping stakeholders informed throughout a case, being familiar with and following the insolvency rules and ethical code and ensuring decisions are properly evidenced and documented.

Regulation continues to evolve

To strengthen trust in the regime, the Insolvency Service explains that it is shifting its approach ‘from oversight of the profession to greater system leadership.’ The Service also wishes to improve transparency and outcomes for those in financial distress and work ‘in partnership with the sector to ensure regulation is clear, consistent and proportionate’.

R3 has consistently supported effective regulation and welcomes these commitments.  Strong professional standards are essential to maintaining confidence and ensuring the best outcomes for creditors, businesses and individuals.

At the same time, regulatory requirements must remain proportionate, maintaining trust without creating barriers to entry or placing undue pressure on smaller firms.

Looking ahead

This year's annual review shows a regulatory system that continues to evolve and improve, while providing reassurance that serious misconduct is rare.

R3 will continue to work constructively with the Insolvency Service and the RPBs to ensure regulation remains effective and proportionate.