From 1 October 2025, the revised Insolvency Code of Ethics comes into force, approved by the Joint Insolvency Committee in collaboration with the ICAEW, ICAS, and IPA. The update brings the UK’s ethical standards into alignment with the 2024 International Ethics Standards Board of Accountants Code and signals a broader shift in how professional conduct is regulated across the sector.
A cultural and regulatory shift
The new Code reinforces that insolvency practitioners (IPs) are accountable not only for technical excellence but for the integrity of their professional conduct and workplace behaviour. Regulators have moved steadily toward a culture-based model of accountability, following similar developments from the Solicitors Regulation Authority and the Financial Conduct Authority, which now treat bullying, harassment, and discrimination as forms of professional misconduct.
The message is clear: ethical competence is as vital as technical skill, and behaviour that undermines public trust—whether in the office, at professional events, or online—can lead to regulatory scrutiny.
Professional behaviour and public perception
The updated Code widens the concept of “professional life,” meaning IPs’ behaviour will be judged by what a reasonable and informed third party would view as conduct discrediting the profession. Respect, fairness, and dignity are now explicitly required standards. Harassment, discrimination, and other forms of mistreatment are regulatory matters, not just HR issues.
This expectation extends beyond traditional work settings. Conduct at conferences, networking events, or on social media, when representing one’s firm or profession, falls within the scope of professional life. Private conduct generally remains outside the Code—unless it reveals serious misconduct such as criminal behaviour that would tarnish the profession’s reputation.
Role, mindset, and organisational culture
A new section on “role and mindset” re-emphasises the IP’s public-interest function. Practitioners must apply the Code both in letter and spirit, exercising integrity, professional scepticism, and what the Code calls an inquiring mind. IPs are expected to challenge assumptions, identify bias, and ensure decisions are informed, transparent, and ethically sound.
The revisions also highlight the responsibility of IPs to foster an ethical culture within their organisations—encouraging openness, accountability, and fair treatment. Regulators now view culture as an ethical safeguard, not a management slogan.
Technology and confidentiality
In a world increasingly shaped by AI and automation, the Code introduces explicit duties around technology. IPs must assess whether digital tools produce reliable and explainable outcomes, especially where algorithms inform judgments or manage confidential data. Before relying on technology, practitioners must evaluate its design, testing, oversight, and the integrity of the data it uses.
The definition of “confidential information” has been broadened to include all non-public material—written, electronic, or visual—requiring careful handling in any digital environment.
What IPs should do now
Practitioners should familiarise themselves with the expanded definition of professional life, review workplace and social conduct policies, and reassess their use of technology against the new confidentiality and reliability standards. Firms should also reinforce training on ethical awareness, bias recognition, and public-interest decision-making.
The revised Code marks a decisive move toward transparency, respect, and technological accountability—ensuring that insolvency professionals act not only competently, but with integrity that sustains public confidence in a rapidly evolving landscape.
