Hands with empty paper reaches out from big heap of crumpled papers

Firstly a reminder. An Insolvency Practitioner’s (IP) record keeping obligations[1] requires them [2] to maintain: “In respect of each case in which he acts… records containing at least the information specified in Schedule 3 to these Regulations as is applicable to the case” Regulation 13 (2) goes on to state that: “where at any time the records referred to in paragraph (1) do not contain all the information referred to in Schedule 3 as is applicable to the case, the (IP) shall forthwith make such changes to the records as are necessary to ensure that the records contains all such information” Schedule 3 sets out 15 sub headings (which each in themselves contain specified elements) of required information, governing; Details of the IP, details of the insolvent, progress of administration, bonding arrangements, matters relating to remuneration, meetings (other than the final meeting of creditors), disqualification of directors, vacation of office, distribution to creditors, statutory returns and time recording. On 27 February 2015, the Government passed new laws which will come into force on 1 October 2015 [3], which are intended to simplify an IP’s record-keeping requirements. The current regulations mean in practice, IPs sometimes have to maintain duplicate records. From October 2015, the requirements will be replaced with a more general requirement [4] to maintain records sufficient to show and explain:

  • The work they and their staff undertake in the course of the ‘administration’ of an insolvency appointment.
  • The decisions that ‘materially affect’ the appointment.

IPs will also no longer be required to tell their recognised professional body where their records are for each case. It is anticipated that in due course the RPBs will create their own rules on where all records relating to appointments should be located, as part of their general membership rules. IPs should be aware that although the RPB notification requirements are relaxed the obligation to notify a competent authority of where the records are (as set out by section 392 Insolvency Act 1986) remains. This post was edited by Julian Hayes. For more information, email blogs@gateleyuk.com. Source: Insolvency Practitioners (Amendment) Regulations 2015 [1] As governed by The Insolvency Practitioners Regulations 2005 (SI 2005/524) [2] At regulation 13 (1)) [3] Paragraph 3, Regulations, amending regulation 13(1) of The Insolvency Practitioners Regulations 2005 (SI 2005/524) [4] Insolvency Practitioners (Amendment) Regulations 2015 (SI 2015/391) (Regulations)

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This blog is intended only as a synopsis of certain recent developments. If any matter referred to in this blog is sought to be relied upon, further advice should be obtained.