IPA Volume Provider Regulation Scheme
The IPA strongly believes that the Volume Provider Regulation Scheme, a first in the insolvency profession, will deliver lasting confidence in the personal debt solutions market.
Launched by the IPA, the Volume Provider Regulation (VPR) Scheme came into effect on 1 January 2019.
The VPR Scheme was rolled out in response to the rapid development of the Individual Voluntary Arrangement (IVA) market – the most commonly used debt solution in England, Wales and Northern Ireland. The Scheme provides some of the closest scrutiny seen in financial services.
We implemented the VPR Scheme with the co-operation of the volume IVA providers whom the IPA regulates – the vast majority of firms operating in this space. In line with the Regulatory Guidance the IPA take a risk based approach to definition of ‘Volume’ which reflects not only the number of appointments but considers other risk factors.
In launching the Scheme, we had input from Insolvency Practitioners, the Government, debt charities and creditor groups.
In July 2019, the Scheme was extended to cover Scottish Protected Trust Deeds (PTDs) administered at volume.
A volume provider is defined by the Insolvency Service as an Insolvency Practitioner or an entity which has at any time within the previous 12 months been responsible for the administration of:
- 1,000 or more cases in which one or more person(s) has acted as nominee in relation to an IVA, and/or
- 5,000 or more cases in which one or more person(s) has acted as supervisor in relation to an IVA, and/or
- 2,000 or more cases in which one or more person(s) has acted as trustee in relation to a Trust Deed (in Scotland) whether or not the Trust Deed is protected.
During 2023, the Scheme covered 67% of the IVA market and 75% of the PTD market.
Better Oversight, Better Outcomes, Better Service to People in Debt and the Public Interest
VPR Scheme members are subject to increased monitoring, comprising:
- Continuous monitoring through Monthly Data Returns
- One full visit and up to four focused reviews a year
- Regular call monitoring
- Bespoke investigations into identified areas of concern
- Annual Financial Review
- Bi-monthly meetings between the Chief Inspector and each Scheme member Insolvency Practitioner representative(s)
- Quarterly meeting between the Scheme member firm owner(s) and the IPA’s CEO and Head of Regulation
- Quarterly meetings between the IPA and the Scheme member representative group
This gives the IPA more detailed and real-time insight into members’ operations. Therefore:
- The IPA’s inspection visits and reports are more focused
- Regulatory time used is far more efficient
- Key areas and common themes are targeted
- The IPA can address concerns immediately
When key areas and common themes are identified, the IPA can target these on an ongoing basis, in order to raise standards quickly and provide an assured response to concerns in the public domain.
Scheme members
“We were warmly welcomed by the IPA into the Scheme during 2020. We were provided the opportunity to discuss the Scheme requirements and to obtain an understanding at the outset of the practical expectations of the Regulator under the enhanced monitoring regime.”
“Members of the scheme meet regularly with the Inspectors and these forums allow meaningful discussions to take place, providing insights into challenges or the opportunity to express our views on proposed changes to the sector which may impact our processes.”
Scheme member
Access the 2023 VPR Scheme Benchmark Report here.
If you would like to join the VPR Scheme and enjoy the benefits of membership, please contact us.
What is an IVA?
- A formal agreement for the repayment of personal debt
- It must be set up by an Insolvency Practitioner
- The Insolvency Practitioner manages the process from start to finish, including working with the individual’s creditors
- Fees are paid to the Insolvency Practitioner for their service
- The Insolvency Practitioner will agree a payment plan with the individual and their creditors
- The payment plan may involve a lump sum, monthly payments or a combination of the two
- An IVA involving monthly payments usually lasts for 5-6 years
- If the individual’s income increases for any reason, creditors will usually be entitled to an increased sum in repayment