Insolvency Service issues ICAEW reprimand

It’s the first time the government body has used these powers against the ICAEW, one of the four recognised bodies that regulate licenced insolvency practitioners (IPs) in Britain.  

The reprimand relates to the trade body’s failures for not monitoring whether Adrian Duncan – an IP based in London who had been prohibited from taking any insolvency appointments – was adhering to those restrictions. 

It also didn’t take steps to ensure any estate funds Duncan was managing were subject to the appropriate financial controls – with it understood that Duncan has absconded having misappropriated nearly £4m in estate funds.  

The Insolvency Service’s head of insolvency practitioner regulation section Clair Hardgrave said: “We take the integrity of the insolvency regime and regulation of Insolvency Practitioners extremely seriously. 

“While the vast majority of licensed Insolvency Practitioners work to a high standard, where failings are identified and there is wrongdoing we will not hesitate to act. The public needs to have confidence in the regulatory regime, and it is important for lessons to be taken from this case.” 

ICAEW chief executive Michael Izza added: “We take our role as a regulator extremely seriously and always seek to act in the public interest. The conduct of Adrian Duncan during the events in question is unprecedented in our 37 years as an insolvency regulator.  

“He deceived ICAEW, his clients and his colleagues and we have enormous sympathy for those affected by his shocking behaviour. Although we acted at all times in accordance with the information made available to us, we accept, as the Insolvency Service says, that there are lessons to learn from this case.  

“We are also implementing a series of changes to our regulatory processes to increase transparency around our proceedings so that more information is available to members of the public.”