Insolvency Practitioner

An insolvency practitioner (IP) is a person authorised under the Insolvency Act 1986 to act in relation to an insolvent person or company. Only authorised IPs may act as liquidators, administrators, administrative receivers, supervisors of voluntary arrangements, or trustees in bankruptcy. Authorisation is granted by one of the recognised professional bodies (RPBs) or by the Secretary of State.

In practice

IPs are regulated by their authorising body and must hold a bond providing insurance against loss to the insolvent estate. They owe duties to creditors as a whole and must act in the interests of all creditors, not just the appointing creditor. Their fees are subject to approval by creditors or the court. The Insolvency Service oversees IP regulation through its monitoring programme.