Preparing for The Insolvency (England & Wales) Rules 2016
New insolvency rules come into force in England and Wales on 6 April 2017. David Menzies outlines the changes.
The Insolvency (England and Wales) Rules 2016 (the 2016 Rules) come into force on 6 April 2017 and bring with them some of the biggest changes made to insolvency proceedings in more than a generation.
The 2016 Rules not only consolidate the Insolvency Rules 1986 and all amendments made to those rules in the past 30 years but also significantly modernise, simplify the language used and bring into effect other changes in legislation.
This page will be regularly updated as a gateway to and summary of other articles on icas.com which are being prepared to inform and support the insolvency profession and other stakeholders as they prepare for the new regime.
Need to knows
The Insolvency Service have indicated that they intend to lay Amendment Rules in Parliament before the 2016 Rules come into effect on 6 April 2017. This is because they are aware that the 2016 Rules contain some errors and unintended consequences of drafting have already been identified. A separate article on amendments will be published after the legislation has been laid in Parliament.
The Insolvency Service have a Blog where questions or comments on the 2016 Rules can be posted. This is a highly useful resource which allows you to be aware of nuances of the 2016 Rules which have been picked up by others.
The 2016 Rules will result in significant change to procedures adopted throughout an insolvency process and represent a significant compliance risk due to the volume of changes being brought in.
The amount of work likely to be involved should not be underestimated. If you have not already started planning for the change don’t delay any further. Some points to consider include:
- If you don’t already know, find out from any case management software supplier what their plans are to manage the changes required, when software updates will be available and what you will need to do.
- Plan for staff training. Staff will need to know what the changes are and how this will impact on their work.
- Plan how document templates, checklists and diaries are to be updated. Consider whether you have the resources internally to do this or whether external resource is required.
- Remember the transitional provisions mean that the 2016 Rules will apply in many aspects to existing as well as new cases on or after 6 April 2017.
Insolvency Rules are changing: Summary of changes
Table of derivations – Familiar with the 1986 Rules? Find out where the equivalent provisions are in the 2016 Rules.
Insolvency Service Blog – A place to post questions or comments on the 2016 Rules and receive an answer from the Insolvency Service.
Insolvency Service Template forms