The Solicitors Regulation Authority will cease to have responsibility for regulating insolvency practitioners on 14 April following formal government approval.
In a notice published this week, business minister Anna Soubry approved the application by the SRA (under the banner of the Law Society) to cease to be a recognised professional body for the sector.
As of last year, the SRA regulated 124 solicitor insolvency practitioners. Only 21 appeared to be active.
The notice from the Department for Business, Innovation and Skills states that ceasing to regulate solicitor IPs will ‘promote consistency and efficiency and could reduce the overall cost of regulation which would ultimately benefit creditors’.
The Law Society has put in place arrangements for IPs to be regulated by other bodies and said that regulation is likely to be more effective as a result.
Soubry added: ‘Revocation is consistent with the objective of ensuring regulatory activities are transparent, accountable, proportionate, consistent and targeted’.
The SRA consulted on the move last year and decided to proceed despite some opposition from those affected. Just three of the 17 formal responses received were in favour, with the rest, including those from the Law Society, Insolvency Lawyers’ Association and the Sole Practitioners Group, opposing the change.