In Focus Commercial Credit
Insolvency – all change
New rules will require creditors to take a more active approach in insolvency cases
Ruth Duncan President, Insolvency Practitioners Association
I have just taken up the role as board chair and president of the Insolvency Practitioners Association. Together with fellow board and committee members, along with the association’s permanent staff, headed by chief executive David Kerr, we will be spearheading the association’s activities in what promises to be a challenging year for the profession. We are the only recognised professional
body specialising solely in insolvency, and have a pivotal part to play in the UK regime. The association currently regulates around 700 insolvency practitioners in the UK, including those licensed by ACCA (under a new collaboration agreement effective from the beginning of this year), and property receivers under a joint scheme with RICS.
Standards of conduct The very nature of insolvency work means practitioners are dealing with clients that need an ultra-professional service. The association’s role in promoting high
standards of conduct, amongst those engaged in insolvency practice, is crucial to ensure companies and individuals, which find themselves in difficulties, have the assurance they will be working with a practitioner that will give them the right advice and undertake assignments with the professionalism you would expect. Insolvency is a proud profession in its own
right – distinct from accountancy and law – and the association can provide a strong voice through dialogue with government and other stakeholders. We have played a key part in recent
developments, such as the Pre-pack Pool, and regularly engage with creditor groups, but some initiatives do require much more
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active participation by creditors. An apathetic approach to insolvency notices is understandable in some cases, but there will be times when creditor involvement can make a difference. One thing emphasised at our recent annual
conference was the need for concentration by practitioners on the effectiveness of communications, so that creditors can readily identify those cases where their involvement may have an impact.
The new Insolvency Rules introduced on 6 April will help streamline procedures and facilitate more efficient decision- making, but there are some new provisions that creditors will need to watch, particu- larly around how small claims are dealt with and a trend towards electronic deliv- ery of notices and information. Perhaps one of the most important
changes is a move to a deemed consent process, whereby silence from creditors on some matters may be taken as approval. Creditors should familiarise themselves
There are some new provisions that creditors will need to watch, particularly around how small claims are dealt with and a trend towards electronic delivery of notices and information
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with the latest changes in the law because they take effect immediately – applying to existing cases as well as new ones – and opportunities to actively participate in person are being limited; creditors’ meetings will usually only be held when creditors request them. The number of insolvencies may not be
as high as it has been, and that, of course, is largely a product of the low interest rates, but there are plenty of changes afoot, both for practitioners and creditors. CCR
June 2017
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