Dodgy insolvency practices in small business ombudsman inquiry's cross hairs

Insolvency practitioners who escaped the scrutiny of last year's financial services royal commission will be targeted in a wide-ranging new inquiry by the Small Business and Family Enterprise Ombudsman. 

Announcing the inquiry this morning, ombudsman Kate Carnell said there were questions about whether the current insolvency system encourages practitioners to restructure and turn a business around rather than sending it into administration. 

Ms Carnell told ABC's Peter Ryan that the Royal Commission was "a lost opportunity"

The Australian Restructuring Insolvency and Turnaround Association has slammed the inquiry as yet another one with narrow terms of reference.