Insolvency Technical Update - July 2015
Your round-up of recent developments in insolvency.
SIP 9 views required
The Joint Insolvency Committee (JIC) is seeking views on a revised Statement of Insolvency Practice (SIP) 9 'Payment to insolvency office holders and their associates' which will apply in relation to insolvency procedures in England and Wales.
The look and feel of the revised SIP 9 differs significantly from the current version of SIP 9 as the emphasis is placed upon the qualitative value of the information provided to creditors (and other interested parties) rather than the format in which that information is supplied, or suggested to be supplied.
Northern Ireland insolvency legislation changes
The Insolvency Amendment Rules (Northern Ireland) 2015 have been made and come into effect on 3 September 2015. This allows for pre-appointment administration expenses to be recovered, for administrators remuneration to be a set amount, and block transfers of appointments where an IP has retired, died or cannot continue in office together with some smaller minor amendments.
A new form – Form 2.18BA has also been introduced, Notice of deemed approval of proposals.
Insolvency Rules sent to Insolvency Rules Committee for statutory consultation
The Insolvency Service has sent the draft Insolvency Rules 2016 which will apply in England & Wales to the Insolvency Rules Committee for statutory consultation. Subject to the work of the Committee it is expected that the legislation will be passed in Spring 2016 with the new Rules becoming effective 1 October 2016. Further details, including a copy of the draft Rules issued and explanatory notes are available.
Document execution modernised in Scots law
The Legal Writings (Counterparts and Delivery) (Scotland) Act 2015 came into force on 1 July 2015, making life easier in situations where counterpart execution or electronic delivery of documents would be helpful. A useful summary of the new provisions has been produced by Shepherd & Wedderburn.
FCA warning on poor debt advice
The Financial Conduct Authority has carried out a review of consumer debt advice which concludes that debt advice provided is generally poor, especially for vulnerable consumers. For those firms which are FCA regulated, the scrutiny of debt advice is likely to become intense in the future. The issues highlighted by FCA should be reflected on by IPs who should consider whether their own procedures could be improved. Learn more.
Redundancy Payments forms and Guidance
The Insolvency Service has issued a number of updated forms and guidance notes for IPs and their staff when dealing with redundancy payment claims. These can be accessed from the gov.uk website.
Insolvency Service websites
The Insolvency Service has created a web page on gov.uk to act as a single entry point for tools and information relevant to IPs.
The Department for Trade and Industry Northern Ireland (DETNI) also has a web landing page for insolvency.
Case law updates
IP's personal liability for contractual arrangements and in particular conditional fee agreements (Commentary by Charles Russell Speechlys LLP)
Insolvency and Restructuring Conference
The annual ICAS conference will be held on 11/12 November 2015 at Gleneagles. This year the conference will feature a new approach with the opportunity for delegates to tailor the conference programme to meet their own needs. Book now.
CPD opportunities from ICAS
A number of courses are being run by ICAS in the next few months:
- CPI/CPPI/CPCI exam training
- Understanding Corporate Insolvency
- Demystifying the numbers
- Solvent company solutions
- CVA workshop
- Director's personal liability – how to minimise the risk