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Alexander Forbes Trustee Services has warned that some insolvency practitioners may be putting their professional reputation at serious risk.

As the economic downturn is forcing more businesses into insolvency, this problem is expected to get much worse.

Under the Pensions Act 2004 insolvency practitioners (IPs) have two weeks to file an s120 'Insolvency Event Notice' with The Pension Regulator, PPF and the trustees and managers of the scheme following their appointment or of becoming aware that the employer was sponsor of an occupational pension scheme.

Darren Toms, associate director at Alexander Forbes Trustee Services, said: "The PPF has adopted a strict interpretation of this rule and already over 200 insolvency practitioners have been reported to their professional bodies for failing to adhere to the deadline.

"No one deliberately avoids filing the s120 on time, but in some cases it is difficult to identify all the occupational schemes sponsored by an insolvent company and some may only come to light some months after the initial appointment.

"The Pension Regulator already holds records of all schemes and we think the time is right for the industry to sit down with the regulator and work out a better way of identifying all the schemes run by an insolvent employer."