The Insolvent Companies (Reports on Conduct of Directors) Rules 2016, coming into effect from 6 April 2016, will mean that for appointments from 6 April 2016, the D1 and D2 forms will be replaced by an online questionnaire, to be completed and submitted within three months of appointment for creditors' voluntary liquidations and administrations.
Insolvency practitioners breathed a sigh of relief when it was announced that work done by insolvency practitioners and their firms in the course of an insolvency appointment under s388 of the Insolvency Act 1986 was excluded from FCA regulation.
Grey areas and uncertainties remain, however, and an insolvency practitioner who failed to register for an interim permission before 1 April 2014 or who has not since applied for authorisation from the FCA, when this was required, will run the risk of trading illegally.
The legislation for reporting on the conduct of directors will change from 6 April 2016. The Insolvent Companies (Reports on Conduct of Directors) (England and Wales) Rules 2016 were laid before Parliament on 22 February 2016 and can be accessed on Reports on Conduct of Directors (PDF)
The changes are not onerous but they will mean changes to systems that should be prepared now. The changes will only affect appointments taking place from 6 April 2016. There are transitional provisions that allow for the existing D1 or D2 reports to be sent on appointments before 6 April 2016, provided that the D1 or D2 report is sent before 6 October 2016.