Insolvency Technical Update – August 2016

Round-up of recent developments in insolvency.

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MVL Tax clearance requests

HMRC are now providing a standard response to clearance applications for company distributions in liquidations, following the introduction of a new anti-avoidance measure. Further details are available.

PPI update

The FCA have announced that they intend to take forward a package of proposals they issued in a consultation in November 2015.

This package includes imposing a deadline for making new PPI complaints (June 2019) and launching a consumer communications campaign to raise awareness of the PPI issue and the deadline.

The FCA also intends making rules and guidance on handling PPI complaints in light of the Supreme Court judgment in Plevin v Paragon Personal Finance Ltd. The FCA announcement is available here.

Legal Updates

Ralls Builders Ltd (In Liquidation), Re [2016] EWHC 1812 (Ch) - The High Court recently held that liquidators and administrators are not able to recover their own costs and expenses of investigating a wrongful trading claim from the directors of a company, even following a finding of wrongful trading under section 214 Insolvency Act 1986. (via CMS Cameron McKenna)

Angel Group Ltd and others [2015] EWHC 3624 – The High Court recently considered how to approach the issue of liquidators who had a ‘conflict of interest’ when moving from administration to liquidation. (via Burges Salmon LLP)

Rowtree Ventures Ltd v Oak Property Partners Ltd [2016] EWHC 1523 - The High Court declined to exercise discretion on making administration orders in respect of two companies that were unable to pay their debts and where the statutory purpose was likely to be achieved, exercising independent commercial judgement. (via Brown Rudnick)

AB Agri Limited v Curtis & Ors [2016] EW Misc B18 (CC) – The Court considered a challenge to an individual voluntary arrangement (IVA) on the ground of material irregularity by the Chairman in valuing a creditors claim. (via Lexis Nexis)

FCA Guidance

The FCA have published guidance for firms outsourcing to the cloud or other third party IT services which outlines thirteen “areas of interest” for regulated firms to consider when engaging third party IT service providers. MacRoberts, Solicitors have put together a helpful summary of the guidance .

ICAS and RBS are running a series of 5 events throughout Scotland with a focus on cyber security. Further details are available here.

Rules modernisation

The Insolvency Service have announced that, subject to Ministerial approval, they expect to lay the new Insolvency Rules for England & Wales in Parliament during September/October.  As a result it is expect that the new rules will not be implemented before April 2017.

A similar project to modernise the corporate insolvency rules in Scotland is ongoing and the AiB have indicated that they expect the new Scottish rules to be implemented in October 2017.

Insolvency Service Summer Stakeholder Update

The Insolvency Service have published their summer edition of their stakeholder update. Areas covered in this edition include: tackling pension scams, Reviewing the corporate insolvency framework, Insolvency Live! inaugural stakeholder event, Changes to insolvency fees, Speeding up IS complaints process, Improvements to IS online debt advice smart answers tool, New GOV.UK landing page for debt advisers, Measuring customer satisfaction, Insolvency notices in The Gazette and Recent and forthcoming publications.

Revision of SIP 15

The Joint Insolvency Committee have issued a consultation on a proposed revision of SIP 15. The consultation closes on 12 September 2016.

Scottish Court fee consultation

The Scottish Courts Service are consulting on proposed changes to fees payable in relation to court services. The proposals could have a significant impact on fees payable as part of insolvency processes. The consultation is open until 12 October 2016.

IVA Standard Protocol

An updated IVA Standard protocol and report has been published to become effective on 1 October 2016.

ICAS Insolvency & Restructuring Conference – Embracing the Future

This year’s conference, chaired by Gillian Carty, Partner at Shepherd and Wedderburn LLP and Donald McNaught, Partner in Johnston Carmichael's Restructuring team, will be held on 22/23 November.

The conference will consider the potential impact on the profession going forward and look at how best to tackle the challenging environment and maximise opportunities. Top calibre, well respected speakers will present on a number of topics including the economic outlook, professional standards, technical and legal updates and more.

Further conference details

Topics

  • Insolvency
  • Legislation

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