ABRT founder Eddie Griffith said the body would aim to address problems identified by the parliamentary insolvency inquiry and had sprung out of conversations between like-minded specialists.

“We came up with the idea that we could set up an association that isn't like anything else out there,” he said. “A new profession for pre-insolvency advisers or advisers likely to deal with distressed businesses.

“We will write a set of very easy-to-follow practice statements and bring credibility to this ‘pre-insolvency’ term.

“Our association will have a strict ethical code, strict guidelines. We will ensure that we provide cents in the dollar outcomes under various scenarios.”

The recent Parliamentary Joint Committee report into corporate insolvency identified issues with “untrustworthy pre-insolvency advice”, including a lack of transparency about who was operating in the space.

It recommended a comprehensive review of “the nature and extent of the harm posed by ‘untrustworthy pre-insolvency advisers’ and whether further regulation or enforcement measures are needed to address this issue”.

The body was a member of small business organistation COSBOA and supported the Cyber Wardens initiative, Mr Griffith said. It had also partnered informally with the Institute of Managers and Leaders.