Insolvency compliance; SIP 1 and the Ethics Code

Insolvency practitioners are authorised and regulated by recognised professional bodies (RPBs) under S391 Insolvency Act 1986 (IA1986). The Joint Insolvency Monitoring Unit (JIMU) was established in 1994 to carry out the reviews necessary to provide information to the RPBs so that they could carry out the regulatory process. These reviews are of course now carried out by the ICAEW and the IPA, themselves regulated by the Insolvency Service.

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A checklist for checklists

Since the Insolvency Rules 2016 were published and then became law in April 2017 many insolvency practitioners have bought 'packages' of standard documents, including template notices, checklists, letters and reports, in order to assist in achieving compliance with the new rules. Such standard documents are then applied to all aspects of insolvency administration and are used by members of staff with varying levels of qualifications and experience.

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Key changes affecting insolvency practitioners from 26 June in the latest money laundering regulations.

The Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 (MLR2017) have been effective since 26 June 2017. A brief consultation period on the draft regulations ran from 15 March 2017 to 12 April 2017, MLR2017 were laid before Parliament on 22 June 2017 and became effective four days later. It is perhaps not surprising that there has not been much comment about MLR2017 - there has not been much opportunity for this.

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Insolvency Rules 2016 – Transitional measures

Schedule 2 of the Insolvency Rules 2016 sets out many transitional measures including those affecting pre 6 April 2010 liquidations that follow administrations. This article sets out some of the transitional measures more likely to affect insolvency practitioners in early April 2017.

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RMCSC adds value for insolvency practitioners

Insolvency appointment takers should have reliable systems in place to deal with all aspects of insolvency work without having to use their own time, or that of senior staff, as a failsafe to make sure that everything is done properly. Well prepared systems and reference guidelines should provide support for less experienced staff, allowing senior staff to focus on new work and more complex issues, so using their time more efficiently.

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Managing risk for liquidators

Members' voluntary liquidations are unique among appointments for insolvency practitioners as they involve distributions to shareholders. These are frequently the last tranche of distributions to shareholders after the business of a solvent company has been wound down, its assets have been realised, all the trade creditors paid in full and the members' voluntary liquidation is the last stage in the company’s history.

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