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Financial Services: Marketing

Volume 459: debated on Wednesday 25 April 2007

To ask the Secretary of State for Trade and Industry what safeguards are in place to ensure that businesses offering individual voluntary arrangements do not use misleading marketing; and if he will make a statement. (134172)

Only an authorised insolvency practitioner is able to administer an individual voluntary arrangement. Insolvency practitioners are required to comply with professional standards agreed by the bodies that regulate them. All of the authorising bodies apply common ethical codes and professional standards to the insolvency practitioners and the way in which they obtain their work falls within the regulatory regime.

In addition the Office of Fair Trading (OFT) has made it clear that insolvency practitioners who act in relation to individual voluntary arrangements require a Consumer Credit License and are therefore subject to OFT regulation.

Earlier this year the OFT warned 26 IVA providers that their advertisements and/or websites were potentially misleading and the OFT continues to monitor that situation.