Insolvency news

Insolvency and Corporate Recovery

The Office of the Director of Corporate Enforcement (ODCE) has recently issued a statement regarding the implications of the COVID-19 pandemic on the exercise of its insolvency-related functions. This is likely to be of interest to company directors, accountants, insolvency practitioners and lawyers. The statement is available here.

Jun 08, 2020
Professional Standards

The Joint Insolvency Committee (JIC) has approved a revised version of Statement of Insolvency Practice SIP 6 which was introduced in April 2017 to coincide with the Insolvency (England and Wales) Rules 2016 and updated effective 1 January 2018. The revised version has been amended only to remove reference to England and Wales in order that the SIP will also apply to corporate insolvency procedures for Scottish registered companies following the introduction of the Insolvency (Scotland) (Company Voluntary Arrangements and Administration) Rules 2018 and the Insolvency (Scotland) (Receivership and Winding Up) Rules 2018 (the 2018 Rules). The revised SIP 6 will replace the current version of SIP 6, effective 6 April 2019. Please note that the SIP does not apply in Northern Ireland and also does not apply to Scottish registered LLPs or special insolvency regimes. SIPs 8, 10 and 12 As a consequence of the introduction of the 2018 Rules, SIP 8 (Conduct of meetings of creditors held pursuant to s98 Insolvency Act 1986), SIP 10 (Proxy forms) and SIP 12 (Records of meetings) will be withdrawn from 6 April 2019 in respect of Scottish corporate insolvency procedures. SIPs 8, 10 and 12 will remain in force in respect of Scottish LLPs and special insolvency regimes which are not covered by the introduction of 2018 Rules and remain under the Insolvency (Scotland) Rules 1986 and other secondary legislation. Effective Date:  6 April 2019.

Mar 29, 2019
Professional Standards

The Insolvency Service GB has issued a special edition of Dear IP concerning the introduction of the Insolvency Service’s new Case Management System (CMS). CMS is being rolled out initially to the agency’s Redundancy Payments Service (RPS), with the subsequent on boarding of its other operational areas, including the investigation & enforcement and official receiver teams, taking place within a timeframe of 12-18 months. The implementation of CMS will impact Insolvency Practitioners in two main ways. Firstly it will update and modernise the calculation of redundancy payments through automation, providing RPS with the ability to apply the latest tax and legislative rules - and any periodic changes thereto - in real time. Insolvency Practitioners and any agents they instruct to carry out redundancy payments may therefore want to study the details of the changes to redundancy payments to check that their own internal calculation models are ‘in sync’ with RPS’s, and for that reason this special edition necessarily deals with the ‘granular detail’ of the changes. To facilitate alignment going forward, the code for the calculation engine that has been developed to support and integrate with CMS has been made available as open source so that practitioners, Agents and their software providers can utilise their own version of the solution if they wish. Secondly, it has been decided to switch the RP14/A upload service away from the current RPS portal and route this process instead through the Director Conduct Return Service (DCRS). Again this will provide a more modern, more stable and more secure platform for those data transfers. As part of this change, DCRS will be re-named the Insolvency Practitioner Service (IPS). The method of uploading will not change. The only substantive change is that the DCRS platform will serve IPs for both director conduct returns and the submission of redundancy claims information, although there will be a simple, automated password re-set process to go through when users first log on to the updated service. Full instructions for using IPS will be published on the relevant GOV.UK web pages. Further information can be located  at Dear IP.

Mar 08, 2019
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