Insolvency technical update – March 2020
Insolvency technical update – Your round-up of recent developments in insolvency.
Coronavirus
A separate update dealing specifically with developments as a result of the coronavirus pandemic has also been published.
ICAS Code of Ethics
A revised and restructured Code of Ethics was introduced by ICAS on 1 January 2020. The new revised and restructured Part 5 of the 2020 ICAS Code of Ethics for Insolvency Practitioners has now been published along with an accompanying article. Part 5 is effective from 1 May 2020. Part D of the former Code (applicable from 1 January 2014) will continue to apply until that date, although earlier adoption of Part 5 is possible and encouraged.
A reminder that a series of articles covering the main changes to the Code of Ethics is available on icas.com. Of particular relevance to Insolvency Practitioners are the articles on the structure of the Code, an enhanced conceptual framework, Safeguards, Inducements (including gifts and hospitality) and Documentation.
Further articles looking at the changes specific to Part 5 will follow in due course.
Changes to protect tax in insolvency cases
The reintroduction of HMRC as a secondary preferential creditor in respect of certain tax debts has been delayed until 1 December 2020.
The change, considered in a previous article, was due to come into effect on 6 April 2020.
Prescribed part
The Insolvency Act 1986 (Prescribed Part) (Amendment) Order 2020 comes into force on 6 April 2020.
The Order increases the prescribed part, payable to unsecured creditors from floating charge recoveries on the insolvency of a company, from £600,000 to £800,000.
Payments to the Pensions Protection Fund
The PPF have published updated information on when and how to make payments to them in relation to insolvencies or restructuring. This relates to dividends from insolvent estates, guarantee payments in respect of pension scheme employer liabilities, and loans notes in respect of restructuring deals.
Redundancy Payments Guidance
The Insolvency Service have published a full list of guidance which is available to individuals and IPs in relation to the Redundancy Payments Service.
AiB DAS Digest
The Accountant in Bankruptcy have published the latest edition of their ‘DAS Digest’. The edition contains:
- DAS quarterly statistics
- DAS regulation changes post 4 November 2019
- DAS case reviews and decisions
- eDEN system update
- Top tips
Legal update
One Optical Limited (In Liquidation) for remuneration.
The latest in a series of notes coming out of the courts concerning the remuneration of liquidators. The latest decision has resulted in the Sheriff at Glasgow agreeing to approve the noters’ remuneration in the restricted sum of the funds in hand, without abatement. The reporter had recommended that the noters’ remuneration be fixed at £62,000.
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