The UK's corporate insolvency market is to be investigated by the Office of Fair Trading (OFT).
A recent report by the World Bank revealed that the cost of shutting down a business in Britain is higher than in countries with similar or better recovery rates, and the OFT has decided to ensure the UK market is functioning properly.
Clive Maxwell, senior director of services at the OFT, said: "We want to identify any potential problems within the corporate insolvency market to ensure that firms and practitioners are competing freely and that the market is working well for the end consumers."
Efficient insolvency services are an important part of modern economies and this is one of the reasons the organisation has launched its investigation, he added.
Earlier this month, figures released by the Insolvency Service showed that 4,716 British firms went into liquidation during the third quarter of 2009, up by 14.6 per cent on the same time last year.
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