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Are insolvency practitioners necessary?

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  Jan Meriss Alfonso Assistant at Ascent Law LLC Insolvency practitioners are professionals who provide assistance to insolvent entities. Their role is to protect the public's interests, exercise judgment, and consider reasonable third-party opinions. Many factors influence their decision-making, such as the nature of the work, the structure of the practice, and conflicts of interest. Nevertheless, their roles are regulated and their decision-making should be subject to effective information barriers. Regulation The Government is considering new legislation to regulate insolvency practitioners. It wants to ensure that practitioners meet certain minimum standards of competence. However, the Government recognizes that sweeping reform of the insolvency industry will take time. It is working with existing regulators to design a new regulatory model, which will be consulted with relevant stakeholders. The proposed changes will be scrutinized to ensure that they work and improve the conf...