This is the second article in a series of articles examining insolvency bonds. In the first we examined the historical and policy background to the bonding scheme. Insolvency practitioner (IP) misconduct and the compulsory requirement for bonding has continued since that first contribution....

IPs became the subject of increased professional scrutiny as a result of the Cork Report's recommendations and the subsequent Insolvency Act 1986 (IA86) reforms. Before those reforms certain conduct was identified that brought some practices into disrepute. One of the principal safety mechanisms...