Insolvency Technical Update - April 2018
Your round-up of recent developments in insolvency.
Avoiding disciplinary and regulatory attention
A number of regulatory reports have been issued by ICAS highlighting the work carried out in monitoring and investigations during 2017. These highlight areas where monitors regularly find areas of concern during monitoring visits and areas of common complaint investigated for potential disciplinary action.
- Insolvency monitoring annual report
- Anti Money Laundering annual report
- Practice Monitoring annual report
- Investigations annual report
Prepare for GDPR
The General Data Protection Regulation (or "GDPR") represents the biggest shake-up of data protection law in almost 25 years. ICAS has created a guide to preparing for GDPR with customisable styles and checklists to help you and your team prepare for GDPR compliance before 25 May.
The Companies (Disclosure of Address) (Amendment) Regulations 2018
The above Regulations came into effect on 27 April 2018 the main effect of which is to allow any director to require Companies House to withhold their residential address from the public register and use a service address instead. Previously they had to meet specified criteria (such as being under threat of harm or intimidation). Insolvency Practitioners should note that where appointed over the registered entity they may obtain the directors personal details registered with Companies House in accordance with Schedule 1 of the Companies (Disclosure of Address) Regulations 2009.
Common Financial Tool
The Common Financial Statement has been updated for new trigger figures. The Accountant in Bankruptcy announced that the new 2018 Common Financial Statement trigger figures will apply for all cases started or created on the AiB's Common Financial Tool database on or after 3 April 2018.
The AiB have also announced that they have made a recommendation to the Scottish Government that the Standard Financial Statement will replace the Common Financial Statement as the Common Financial Tool with effect from 1 October 2018. Legislation is expected be brought forward shortly.
Redundancy Payments Service - Maximum weekly pay limit
The maximum amount the Redundancy Payments Service (RPS) can pay individuals per week increased from £489 to £508 from 6 April 2018.
National Minimum Wage and Living Wage
New National Minimum Wage and Living Wage rates came into force on 1 April 2018. The new rates are as follows:
|Year||25 and over||21 to 24||18 to 20||Under 18||Apprentice|
Pension auto enrolment rates
Minimum employee and employer automatic pension enrolment contributions increased from 6 April 2018 and will increase again from 6 April 2019 in accordance with the table below. Further information is available from The Pensions Regulator:
|Date effective||Employer minimum contribution||Staff contribution||Total minimum contribution|
|Currently until 5 April 2018||1%||1%||2%|
|6 April 2018 to 5 April 2019||2%||3%||5%|
|6 April 2019 onwards||3%||5%||8%|
Insolvency Complaints Gateway
The Recognised Professional Bodies and the Insolvency Service have agreed that from 1 May 2018 complaints in relation to Northern Ireland will no longer go direct to Recognised Professional Bodies and should now be lodged through the Insolvency Complaints Gateway. This brings the complaints handling process across the UK into alignment. Firms should ensure that they update their complaints process and relevant references in documents.
Bankruptcy Fees (Scotland) Regulations 2018
The Scottish Government has laid The Bankruptcy Fees (Scotland) Regulations 2018 (SSI 2018/127). Subject to Scottish Parliament scrutiny, the Regulations will come into effect on 1 June 2018 and will apply to trust deeds executed on or after 1 June 2018 and sequestration petitions presented or debt applications made on or after 1 June 2018.
The main changes in fees are as follows:
|Current||From 1 June 2018|
|Creditor petition fee||£100||£150|
|Additional fee payable by petitioning creditor where AiB is also subsequently appointed as trustee||£200||£300|
|Sequestration supervision fee (annual)|
-where no commissioner is in post
-where a commissioner is in post
|Publishing notice of a PTD on the Register of Insolvencies||£35||£40|
|Registering a PTD||£36||£40|
|Registering a court order for replacement trustee||£19||£50|
In addition, a number of fees have not had the amount amended by will now apply in respect of consideration of a matter (application, determination, order, etc) and not just where the matter is actioned (application granted, determination made, order registered, etc).
Note of The Provisional/Interim Liquidator of Equal Exchange Trading Limited  CSOH 35. The Court of Session opinion in relation to the above gives guidance in respect of the role of the court reporter when fixing the remuneration of a liquidator. The opinion differs in some aspects to the approach recently set out by the Sheriff in Dumfries in respect of the Note by the Joint Liquidators of S&M Livestock Ltd. A helpful summary is available via BBM Solicitors blog.
Newcastle upon Tyne Hospitals NHS Foundation Trust v Haywood  UKSC 22 The Supreme Court has confirmed that Notice of termination of employment, delivered by letter, does not begin running until the letter is actually read by the employee. (via Pinsent Masons)
Julie Anne Davey v James Money & Jim Stewart-Koster (as former joint administrators of Angel House Developments Limited)  EWHC 766. A High Court ruling has given administrators guidance on "light touch" administrations, and on how they can minimise their risk of liability for breach of duty when selling company assets.It has also opened up the possibility for the first time that a charge-holder can be liable for an administrator's breach of duty if the administrator is acting as an agent of the charge-holder.
The possibility of such liability for charge-holders has existed where receivers are appointed but the judge's suggestion that it might arise in an administration is a new concept. (via Pinsent Masons)
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