ACCA calls for insolvency practitioners to be regulated

The ACCA is the latest body to call on Minister for Justice Alan Shatter to regulate personal insolvency practitioners.

Key parts of the personal insolvency legislation come into effect today. The role of personal insolvency practitioners will be a crucial part of its future success.

The president of the Association of Chartered Certified Accountants, Tom Murray, has urged Mr Shatter to introduce legislation to regulate the practitioners.

As it stands, there is no barrier or requisite qualification needed for any individual applying for a licence to become a practitioner.

The role of the practitioner will have a huge bearing on the success or otherwise of personal insolvency regulations because this person will mediate between the debtor and the banks.

“Based on the recent experience of the unregulated corporate insolvency market in Ireland, failure to vet individuals has the potential to have a detrimental impact on those considering entering bankruptcy in Ireland, their creditors and ultimately the Irish economy” said Mr Murray.

Speaking at the associations annual president’s dinner last night he added: “As personal insolvency legislation is being implemented and executed, the hard work is only beginning in terms of resolving the problems facing individuals and their creditors.

“The creation of the role of personal insolvency practitioner opens new commercial opportunities for individuals, however, based on the unregulated corporate insolvency market in Ireland, the taking of corporate insolvency appointments by individuals with little or no insolvency experience, in many cases based on cost, has proven to be a false economy for companies, creditors and government bodies in the recent past.”