Deregulation Act 2015 (Insolvency) (Consequential Amendments and Transitional and Savings Provisions) Order 2015

Whats new?

The Deregulation Act 2015 (DA 2015) made a number of amendments to the Insolvency Act 1986 (IA 1986), the Deeds of Arrangement Act 1914 (DAA 1914), and Company Directors Disqualification Act 1986 (CDDA 1986).

DA 2015, s 17, contains partial authorisation provisions which are meant to increase insolvency sector competition by reducing certain entry barriers. This is done by letting insolvency practitioners specialise in either personal or corporate insolvency, or being fully authorised to act in both.

DA 2015, Sch 6, Pt 6, simplifies the regulatory regime for insolvency practitioners and provides that the Secretary of State as sole competent authority will withdraw from the direct authorisation of insolvency practitioners after a transitional period. It also repeals a provision allowing the Secretary of State to recognise a body whose members may act as a nominee or supervisor of a voluntary arrangement under IA 1986.

Changes

In consequence of DA 2015, s 17, Sch 6, Pt 6, a number of amendments are made to secondary legislation including the Solicitors Recognised Bodies Order 1991, SI 1991/2684, and the Money Laundering Regulations 2007, SI 2007/2157.

Transitional provision is made so where an individual applies to the Secretary of State for authorisation to act as an insolvency practitioner before 1 October 2015, and authorisation is granted between then and 30 September 2016, the formula for fee calculation which the individual must pay is £2,400 multiplied by the days between authorisation and 30 September 2016, divided by 365.

Saving provisions are made regarding these amendments, between 1 October 2015 and 30 September 2016, in relation to individuals who apply for insolvency practitioner authorisation before 1 October 2015 or who hold such an authorisation before that date. This includes provisions relating to:

  • the Insolvency Practitioners Tribunal operation
  • the requirement for insolvency practitioners authorised by the Secretary of State to submit returns containing certain information, which will include the number of cases in which the insolvency practitioner has acted recently as well as details relating to a professional development, and the power for the Secretary of State to request such information

In addition, the Insolvency Practitioners Tribunal (Conduct of Investigations) Rules 1986, SI 1986/952, and the Deeds of Arrangement Fees Order 1984, SI 1984/887, are revoked.

See: http://www.legislation.gov.uk/uksi/2015/1641/pdfs/uksi_20151641_en.pdf for the full text of the legislation

 

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