Question to the Department for Business, Innovation, Science and Trade:

To ask the Secretary of State for Business, Innovation, Science and Trade, what assessment his Department has made of the adequacy of safeguards for the transfer and subsequent use of confidential information when insolvency claims arising from related circumstances are assigned to commercial purchasers.

The Department considers that existing legal and regulatory measures provide appropriate safeguards. Insolvency office holders are qualified and regulated professionals, subject to statutory duties, professional standards, and court oversight.

The Insolvency Act 1986 allows for rights of action to be assigned, and case law supports the transfer of necessary information to pursue the claim.

The transfer of information remains governed by the Data Protection Act 2018 and the General Data Protection Regulation (GDPR). Where the office holder considers it necessary, they may make an application to the court for permission before providing confidential information to the assignee.