Insolvency technical update: June 2026

Read our latest insolvency technical update – your round-up of the recent developments in insolvency.

Guidance on the handling of car finance claims in insolvency appointments

We’ve issued updated guidance, jointly with ICAEW and the IPA, on how insolvency practitioners should handle car finance claims, following the publication of the FCA redress scheme rules.

The Insolvency (England and Wales) (Amendment) Rules 2026

The Insolvency (England and Wales) (Amendment) Rules 2026 came into effect on 22 June. The legislation contains mainly technical amendments, but some practical impacts include:

• Only one copy of a document will need to be delivered if electronic delivery is used and the Rules otherwise specify multiple copies of a document is to be delivered.
• The limit for determining whether a creditor’s petition for bankruptcy in the London Insolvency District should be presented in the High Court or the County Court at Central London is increased to £500,000.
• Where creditors have fixed the basis for the office holders fees and a creditors’ committee has subsequently been formed, the committee will be consulted for permission to exceed the fee estimate.

More detail on the legislative changes is available in the accompanying Explanatory Memorandum.

Firms should ensure that procedures, checklists and other documentation are updated to reflect the new requirements.

Anti-Money Laundering

Several changes have been made to the UK anti-money laundering rules from 30 June 2026. 

The Money Laundering and Terrorist Financing (Amendment) Regulations 2026 update the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 (“2017 Regulations”). 

While the legislation contains several amendments, the ones most likely to affect insolvency practitioners include:

• Enhanced due diligence is now only mandatory for countries on the FATF ‘call for action’ list (‘black list’). The FATF list of countries subject to increased monitoring (‘grey list’) will however remain relevant for assessing geographic risk factors.
• Enhanced due diligence is only required where transactions are “unusually large or unusually complex in each case given the nature of the transaction”. This is a subtle but important change from the previous requirement which applied to “complex or unusually large” transactions.
• References to monetary amounts in the 2017 Regulations are now stated in pounds sterling rather than euros.

Find out more about the changes.

Changes were made to the FATF grey list at its recent June plenary session.

Firms should ensure that policies, procedures, checklists and other documentation are updated to reflect the new requirements.

Sheriff officer fee changes

Changes to fees payable for services by Sheriff Officers and Messengers-at-Arms in Scotland will change on 25 September under the Act of Sederunt (Fees of Messengers-at-Arms and Sheriff Officers) 2026 (the Act of Sederunt).

The changes also introduce a new unit-based charging model. The initial unit rate will increase by 2% each year up to and including 2028/29. The Act of Sederunt also changes how time-based work by officers of court will be charged.

The Insolvency (Amendment) Act (Northern Ireland) 2026

Royal Assent has been given to legislation which will largely align Northern Ireland's insolvency framework with reforms previously introduced in Great Britain through the Small Business, Enterprise and Employment Act 2015 and related legislation. This includes: 

• Meetings and decision procedures.
• Creditor opt-out.
• Use of websites.
• Power for liquidators and administrators to assign certain claims.
• Creditor consent to extend administrations for up to 12 months.

Most of the provisions are still to be commenced at a future (unknown) date, so not yet in force.

Learn more about the changes.

ICAS Code of Ethics

A revised ICAS Code of Ethics came into effect on 1 July 2026. 

The updated Code brings in provisions relating to tax planning and related services and with new application material in relation to professional behaviour. Read more about the updated Code of Ethics. 

There are no changes to the Code of Ethics: Part 10 - Insolvency Practitioners. This already includes equivalent application wording in relation to professional behaviour at paragraph 2105.1 A2. This is being introduced into the main code at 115.1 A2. Additional Guidance to the ICAS Code of Ethics: Fundamental ethics principal of professional behaviour – paragraph 115.1 A2 has been produced to accompany the revised ICAS Code of Ethics and is equally applicable to paragraph 2105.1 A2.

SIP 2 consultation

The Joint Insolvency Committee is consulting on proposed changes to SIP 2. SIP 2 covers investigations by office holders in administrations and insolvent liquidations, as well as the submission of conduct reports.

Find out more about the proposed changes and how to respond to the consultation which closes on 6 August 2026.

Legal updates

Cross Transport Ltd (In Administration), Re [2026] EWHC 1636 (Ch) The High Court has ruled that administrators may pay litigation funders and other administration costs ahead of debts carrying statutory super-priority following a Part A1 moratorium. (via Insolvency Insider)

Cockburn & Ors v Hope [2026] CSOH 60 The Court of Session has delivered a detailed and pragmatic judgment on the liability of a judicial factor, providing useful guidance for insolvency practitioners and others acting in a court‑appointed capacity.