In a bid to cut red tape the Government published a draft deregulation bill which recently received royal assent, becoming the Deregulation Act 2015 (the Act), as discussed in a previous blog post. The Act affects various areas of law but this post only gives a snap shot summary of some of the changes.
1. Partial authorisation of IPs
The Act introduces a new authorisation regime for IPs. Currently individuals who are licensed to act as IPs are authorised in relation to all categories of appointment. However, under the new regime a person can decide to act (1) only in relation to companies, (2) only in relation to individuals or (3) in relation to both companies and individuals. The new regime aims to increase accessibility, increase competition and reduce the cost of training for specialised IPs. Some argue that this will dilute the value of the qualification and negatively impact on the profession’s reputation.
2. Bankruptcy and statement of affairs
Under the new Act, a debtor made bankrupt on a creditor’s petition will no longer be required to automatically provide a statement of affairs to the official receiver. Instead, the onus is on the official receiver to request a statement. Upon request, the debtor must provide the statement within 21 days or he will commit an offence.
3. Administration appointments
The Act confirms that directors do not need to give notice to the company of a proposed administration appointment where there is no qualifying floating charge holder.
Most of the changes will not come into force until October 2015, so we will have to wait and see how the changes affect daily practice and whether the objectives of the Act are achieved. We will keep you posted.