If you are unhappy with the service you have received from an insolvency practitioner in any of their appointments, you can complain through the Insolvency Complaints Gateway. That covers the personal appointments as well as the corporate ones: a trustee in bankruptcy, a supervisor of an individual voluntary arrangement or a company voluntary arrangement, a liquidator, an administrator, a receiver or an administrative receiver. Every insolvency practitioner is authorised by a recognised professional body, so the Gateway reaches all of them.
You should always try to resolve your complaint with the insolvency practitioner first. However, if you are still unhappy, you should lodge your complaint with the Insolvency Complaints Gateway. A complaint about a personal insolvency appointment goes to the Gateway in the same way as a corporate one. The Financial Ombudsman Service is not a substitute route: it deals with complaints about firms carrying on activities the Financial Conduct Authority regulates, such as debt advice or debt management provided by a regulated firm. If the complaint is about an insolvency appointment, the Gateway is the route; if it is about a regulated financial service that happened to be sold alongside it, the Ombudsman may be. And if what you are really challenging is a decision the office-holder has taken in the case, that is an application to court, not a complaint at all.
Who can complain?
Anyone who is dissatisfied with the service they have received or the conduct of an insolvency practitioner, or someone carrying out work on their behalf, can complain. This includes:
- Debtors
- Creditors
- Employees
- Directors and shareholders of a company
Who will consider the complaint?
A member of the Insolvency Service’s staff will undertake the initial review of the complaint and decide whether the complaint is suitable to be forwarded onto the authorising body. It is then the role of the relevant authorising body to investigate the complaint and issue sanctions against the insolvency practitioner where appropriate.
How long do complaints take to resolve?
If the complaint is passed on to one of the recognised professional bodies, the professional body will aim to complete the investigation within six months, although some investigations may take longer. You will receive an update on the progress of the investigation. You will then be advised of the outcome of the investigation within 15 days of the decision being made.
What outcome can you expect?
Even if your complaint is valid, not all errors will lead to action being taken against the insolvency practitioner. For example, if an IP is slow to deal with a small amount of correspondence, that will not necessarily lead to disciplinary action. However, there are various infringements and examples of misconduct which, if proven by the investigation, will result in a sanction. Sanctions can be both financial and non-financial. A common sanctions guidance document is available.
It is also important to note that the authorising body cannot award compensation, or compel an insolvency practitioner to pay compensation, for any financial loss you may have incurred.