Insolvency Service launches new strategy to improve corporate standards

The Insolvency Service has announced plans to be recognised as the UK’s leading authority in enforcing corporate and insolvency standards.

Its new investigation and enforcement strategy has three core objectives - enforcement of the UK’s insolvency framework, enforcement of the Companies Act 1985 and associated legislation and tackling economic crime facilitated through companies.

The Economic Crime and Corporate Transparency Act 2023 and its subsequent regulations created more than 100 new offences under the Companies Act and has provided funding for the Insolvency Service to play a more prominent role in corporate enforcement.

This will be supported by proactive intelligence gathering to keep pace with those who abuse the insolvency framework and take advantage of the corporate landscape.

The strategy will also see the Insolvency Service deepen its partnership with other agencies including the National Crime Agency and HMRC as well as working even more closely with Companies House to enforce corporate standards.

Specialist investigators will continue to investigate COVID-19 Bounce Back Loan abuse, with the government announcing earlier this year that viable existing casework would be transferred to the Insolvency Service from the National Investigation Service (NATIS).

In 2024-25, the Insolvency Service secured 77 criminal convictions, over 1,000 director disqualifications, and more than £4 million in compensation. Forty-one companies were also wound-up in the public interest following investigations by the agency.

The economic benefits of the agency’s work in disqualifying company directors and shutting down rogue companies was calculated at in excess £50 million for this period.

Mark Goodwin, founder and managing director at Optimise said:

“We fully support the Insolvency Service’s new enforcement strategy for corporate and insolvency standards.

“Acting against those who are unfit to run companies will reduce the harm caused to legitimate businesses and creditors and help to create an environment that supports much needed economic growth.”