The announcement follows an investigation from the Daily Telegraph, which found proof of "abuses" of the insolvency process.
In response to this, the ABFA has confirmed that it is to create an independent "ombudsman-style" service in order to deal with complaints about its member firms.
Kate Sharp, Chief Executive of ABFA, said that the reforms provide tangible proof that the organisation is not simply burying its head in the sand.
"We're working desperately hard to make sure what's put in place is a vigorous system to make sure no one can accuse the industry of not taking this seriously," she told the news provider.
"Whether [the abuses] turn out to be a very small fringe or a massive malignant thing, we'll have something in place to make sure it can't happen."
Posted by Thomas Fletcher