We called for a number of further changes to be made to the wording of SIP 3.1 to bring it closer to the FCA’s CONC rules.
We are still not confident that that in its current form the SIP will be enough to address the problems of poor advice from debt packagers and lead generators leading to people choosing an IVA when another debt solution would be more appropriate.
Insolvency Practitioners must be required to check the full chain of advice a client has received before they being referred for an IVA.
There also need to be more prescriptive rules about the IPs responsibility at this stage to understand the client’s circumstances and confirm that an IVA is the correct solution for them.
You can download our full response here.