Insolvency Technical Update - November 2017
Insolvency technical update – Your round-up of recent developments in insolvency
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Code of Ethics
The ICAS Code of Ethics changed with effect from 1 November 2017 to include requirements in respect of “Non-Compliance with laws and Regulations (NOCLAR)” and the inclusion of moral courage as an enabler. Although not included in Part D of the ICAS Code of Ethics, IPs are reminded that Part A of the Code of Ethics is also applicable to IPs.
ICAS has also published a guidance paper, The Ethical Journey – The Right, the Good and the Virtuous, to help ICAS members make the ‘journey’ from identifying an ethical dilemma to its resolution.
England & Wales Rules amended
Amendments to the Insolvency (England & Wales) Rules 2016 have been laid in Parliament together with Regulations for limited liability partnerships which will bring the insolvency regime for LLPs into line with mainstream insolvency procedures. Further details are available here. The changes will come into effect on 8 December 2017.
Working together with HMRC
HM Revenue & Customs have announced the creation of a new role within the organisation aimed at creating more effective working relationships between the organisation and the profession.
HMRC are now automatically issuing Insolvency Practitioners with company UTRs once their appointment has been updated on the relevant HMRC system. No action is required by IPs on receipt of the notification.
Further details are available here
Monitoring of volume IVA and PTD providers
The Insolvency Service has issued updated guidance on the monitoring of volume IVA and PTD providers. The guidance covers RPB monitoring of any firm that controls greater than 2% of the total market (including new and existing cases), or greater than 2% of new cases over a rolling three month period.
Insolvency Services Account interest rate changes
The interest rate paid on estate balances in the Insolvency Service Account (ISA) is set to match the Bank of England (BoE) base interest rate. Following the BoE base interest rate increasing from 0.25% to 0.5% on 2nd November 2017, the rate of interest paid on ISA estate balances increased to 0.5% from 22nd November 2017.
The Insolvency Service have updated the RP1 factsheet to include information explaining the importance of case reference numbers and where to get them.
Insolvency Service Autumn Newsletter
The Insolvency Service have published their Autumn newsletter. This contains information on Monitoring large IVA providers, Breathing Space call for evidence and new IS complaints process.
Court Fee consultation
The Scottish Government have issued a consultation on Court Fees which would apply from 1 April 2018 to 31 March 2021. The consultation closes on 12 January 2018.
The Accountant in Bankruptcy have published their latest DAS Digest which includes information on fair and reasonable guidance, DASH system development and DAS case review and decisions.
Global Corporate Limited v Dirk Stefan Hale  EWHC 2277 (Ch). The Applicant, the assignee of a claim against the former director and shareholder of a company in liquidation, failed to have their claim upheld. The case highlights the importance of properly drafted Deeds of Assignment. Further commentary via Lexology
Officeserve Technologies Limited and Wood and Haskew v Anthony-Mike  EWHC 1920 (Ch)The court considered whether, in terms of s127 Insolvency Act 1986, a settlement agreement entered into between the presentation of a winding up petition and the granting of the winding up order was void, if so, whether the court should validate it and if it was valid, what claims against the respondent were barred. (via Taylor Wessing)
Farnborough Airport Properties Company and another v HMRC The Upper Tribunal (Tax and Chancery Chamber) considered how the appointment of a receiver affected the tax grouping. Ordinarily the appointment of a receiver has not affected tax relief available within a group but the decision in this case challenges that position. (via Squire Patton Boggs)
Premier Motorauctions Ltd (in liquidation) and another v Pricewaterhousecoopers LLP and Lloyds Bank  EWCA Civ 1872 The court considered whether the ATE insurance was adequate or whether security for costs should be obtained. (via Hardwicke)