Chapter 2 - The Insolvency Service

Chapter 2
Prior to 1 April 2004 insolvency practitioner (IP) regulation costs were largely
met from DTI funding. The DTI received all fees collected by The Service
including a notional £100 fee collected from IPs authorised by the SoS. A fee
of £35 per Individual Voluntary Arrangement (IVA) registered by an IP was
also collected and paid to DTI.
Following the introduction of the Enterprise Act on 1 April 2004 new fees
reflecting the cost of authorising and monitoring IPs and RPBs were
introduced. The IVA fee of £35 has been continued. An authorisation fee of
£2,000 and annual monitoring fee £2,000 are payable by IPs authorised by
the SoS and an annual fee equivalent to £100 per IP authorised by RPBs is
payable by the RPBs.
The following table shows the financial results and volumes for the IP
regulation activity. Results for 2004-05 and 2005-06 cannot, however, be
directly compared with earlier years due to the changes implemented on 1
April 2004:
2001-02 2002-03 2003-04 2004-05 2005-06
IVAs 6,009 6,425 8,210 11,612 24,938
IPs authorised by n/a n/a n/a 92 83
SoS
IPs auhtotised by n/a n/a n/a 1,575 1,598
RPBs
£’000 £’000 £’000 £’000 £’000
IP Regulation fee 245 259 342 761 1,211
income
IP Regulation
costs
1,052 1,143 514 702 808
Future Developments
Following a fees review in 2005-06
the fees for IPs authorised by the
SoS will increase from 1 April 2006
to £2,100 and the fees charged to
RPBs have been increased from 1
April 2006 to £150 and from 1 April
2007 to £200 per IP authorised by
the RPBs. The fee for registration of
an IVA has, however, been reduced
from 1 April 2006 to £15 per
registration. The fees review showed
30