A regulatory reminder of the requirement to comply with The Provision of Services Regulations 2009
IPA Insolvency Practitioner newsletter, August 2024
The aim of this article is to emphasise the critical importance of compliance with The Provision of Services Regulations 2009 for all Insolvency Practitioners. The regulations are in place to ensure transparency, maintain the highest standards of professionalism and instil confidence in regulated professions. Across our regulatory work we still see regular instances of non-compliance with some simple standards set out in the regulations.
A brief Introduction to the history of The Provision of Services Regulations 2009
The Provision of Services Regulations 2009 (PSR 2009) were implemented as part of compliance with an EU directive and were retained post-Brexit. They play a pivotal role in regulating the provision of services in the United Kingdom. Post-Brexit Government guidance for complying with PSR 2009 was updated in December 2020 and set out the legal framework for the provision of regulated services, including those offered by Insolvency Practitioners.
Ongoing review of the legislation
Notwithstanding a consultation on the review of the legislation that closed on 7 November 2023, it is crucial to highlight that the existing PSR 2009 remains in force. Until any potential changes are implemented, Insolvency Practitioners must continue to adhere to the current regulations to uphold professional behaviour and standards.
The importance of compliance with PSR 2009 Regulations 8 and 9
Compliance with Regulation 8 and Regulation 9 is fundamental to maintaining professional standards and client trust. Regulation 8 mandates the provision of essential information before services are delivered, ensuring clients are well-informed from the outset. Regulation 9 emphasises the ongoing provision of information during service delivery, which is vital to maintaining transparency and enabling clients to make informed decisions.
These regulations extend to various aspects of your practice, including your websites and initial communications with clients. Your commitment to transparency and high-quality service provision is essential to upholding the reputation of the insolvency profession.
Regulation 8: Information to be provided before the service is provided
Regulation 8 emphasises the need for Insolvency Practitioners to provide clear and comprehensive information to clients before any regulated service is provided. The Regulation includes a large number of points to cover including:
- A description of the service being offered, including its nature and scope
- The identity of the regulated person or body providing the service
- Details regarding any insurance or guarantee that covers the service
- The complaints handling procedure, contact information and reference to Complain about an insolvency practitioner – GOV.UK (www.gov.uk)
- The relevant regulatory authority and its contact information
Compliance with Regulation 8 ensures that clients are well-informed about the services they will receive and any potential risks or issues, promoting transparency and trust.
Regulation 9 & 10 : Information to be provided on request and about dispute resolution
Regulation 9 underscores the importance of continuous information provision during the service delivery. Insolvency Practitioners must:
- Update clients on any changes to the initial information provided under Regulation 8
- Keep clients informed of any developments in the service that may affect the client’s rights or interests
- Provide clients with any necessary information related to the service in a clear and comprehensible manner
In conclusion, as Insolvency Practitioners, it is your responsibility to ensure compliance with PSR 2009, with particular attention to Regulation 8 and Regulation 9. Compliance helps instil confidence in the profession and assists with building trust with clients.
If you have any questions or concerns regarding your compliance with PSR 2009 you should seek your own legal advice. For general regulatory queries, please contact regulation@ipa.uk.com.