Section 138 | Regulatory objectives

(1)After section 391A of the Insolvency Act 1986 (inserted by section 137) insert—

391BApplication of regulatory objectives

(1)In discharging regulatory functions, a recognised professional body must, so far as is reasonably practicable, act in a way—

(a)which is compatible with the regulatory objectives, and

(b)which the body considers most appropriate for the purpose of meeting those objectives.

(2)In discharging functions under this Part, the Secretary of State must have regard to the regulatory objectives.

391CMeaning of “regulatory functions” and “regulatory objectives”

(1)This section has effect for the purposes of this Part.

(2)“Regulatory functions”, in relation to a recognised professional body, means any functions the body has—

(a)under or in relation to its arrangements for or in connection with—

(i)authorising persons to act as insolvency practitioners, or

(ii)regulating persons acting as insolvency practitioners, or

(b)in connection with the making or alteration of those arrangements.

(3)“Regulatory objectives” means the objectives of—

(a)having a system of regulating persons acting as insolvency practitioners that—

(i)secures fair treatment for persons affected by their acts and omissions,

(ii)reflects the regulatory principles, and

(iii)ensures consistent outcomes,

(b)encouraging an independent and competitive insolvency-practitioner profession whose members—

(i)provide high quality services at a cost to the recipient which is fair and reasonable,

(ii)act transparently and with integrity, and

(iii)consider the interests of all creditors in any particular case,

(c)promoting the maximisation of the value of returns to creditors and promptness in making those returns, and

(d)protecting and promoting the public interest.

(4)In subsection (3)(a), “regulatory principles” means—

(a)the principles that regulatory activities should be transparent, accountable, proportionate, consistent and targeted only at cases in which action is needed, and

(b)any other principle appearing to the body concerned (in the case of the duty under section 391B(1)), or to the Secretary of State (in the case of the duty under section 391B(2)), to lead to best regulatory practice.

(2)In section 419 of the Insolvency Act 1986 (regulations for the purposes of Part 13), at the end insert—

(5)In making regulations under this section, the Secretary of State must have regard to the regulatory objectives (as defined by section 391C(3)).