What does a licensed Insolvency Practitioner do?
Often abbreviated to an ‘IP’, a licensed Insolvency Practitioner provides a range of supportive services to individuals and companies when they’re struggling financially. Their aim’s to help you find the best solution that works for you, your shareholders and any creditors.
Most IPs are accountants or insolvency specialists working in firms of accountants (like us, at FTS Recovery).
An IP must hold a licence and have:
• passed the insolvency examinations – Joint Insolvency Examinations Board (JIEB) exams
• gained experience in insolvency work; and
• satisfied an authorising organisation (also known as regulator) that they’re fit and proper to act as an IP
Importantly, IPs must follow the law and their work is monitored by regulators to make sure that they do.
IPs typically are parachuted into difficult situations and can add value by assessing the position and advising on the various insolvency options available.
A competent practitioner should look to leverage their experience and contact base to assess whether a refinance (debt or equity) or softer, non-formal insolvency solution is a possibility. In some cases, their main task is to try to rescue a business, or in the absence of this being possible, conduct an orderly winding up of affairs.
Their duty is to look after the interests of creditors.