Rely on the most comprehensive, up-to-date legal content designed and curated by lawyers for lawyers
Work faster and smarter to improve your drafting productivity without increasing risk
Accelerate the creation and use of high quality and trusted legal documents and forms
Streamline how you manage your legal business with proven tools and processes
Manage risk and compliance in your organisation to reduce your risk profile
Stay up to date and informed with insights from our trusted experts, news and information sources
Access the best content in the industry, effortlessly — confident that your news is trustworthy and up to date.
With over 30 practice areas, we have all bases covered. Find out how we can help
Our trusted tax intelligence solutions, highly-regarded exam training and education materials help guide and tutor Tax professionals
Regulatory, business information and analytics solutions that help professionals make better decisions
A leading provider of software platforms for professional services firms
In-depth analysis, commentary and practical information to help you protect your business
LexisNexis Blogs shed light on topics affecting the legal profession and the issues you're facing
Legal professionals trust us to help navigate change. Find out how we help ensure they exceed expectations
Lex Chat is a LexisNexis current affairs podcast sharing insights on topics for the legal profession
Printer Friendly Version
Alison read law at the LSE and then studied as a solicitor, prior to entering the insolvency profession in 1996. A Licensed Insolvency Practitioner from a small practice background, specialising in bankruptcy investigations, bespoke IVA and CVA drafting and SME restructuring. Formerly a partner in Pitman Cohen LLP prior to joining the Insolvency Practitioners Association (IPA) Secretariat, initially as a consultant in 2010. Alison has since assisted the IPA with a number of projects, including serving as secretary to the JIC sub-group responsible for the revision of Statements of Insolvency Practice (SIPs) 7 & 9 and the creation of SIP 1; a pilot project to measure empirical IP performance data; the establishment of the IPA’s CPI+ course; and most notably, the publication of the IPA’s Insolvency Practitioners’ Handbook.Alison has been the Head of Regulatory Standards and Support at the IPA since 2012 and assists in the delivery of regulatory assistance to IPA members and its growing program of conferences, courses and events. Alison is a regular speaker on various aspects of insolvency regulation and has a keen interest in economics, politics and current affairs.
The new SIP has been through a lengthy process of refinement and is now in its final approval stages with the Recognised Professional Bodies (RPBs). The Joint Insolvency Committee is looking at an issue date of 01 June 2015, with an effective date of 01 July 2015, to give the Pre-Pack Pool Steering Group time to complete their work in setting up the new pre-pack pool.
The most significant change is in respect of the increased emphasis placed on the marketing of the business and the adoption of Teresa Graham’s six “Marketing Essentials”. Other significant changes include requiring the Insolvency Practitioner to make a prospective connected party purchaser aware of their ability to approach the pre-pack pool and the potential for enhanced stakeholder confidence from the connected party approaching the pre-pack pool and preparing a viability statement for the purchasing entity. There is also a stipulation that any valuations obtained should be carried out by appropriate independent valuers and/or advisors, carrying adequate professional indemnity insurance.
Throughout the SIP, there is generally a shift towards a “comply or explain” methodology.
The intention is that in cases involving connected parties, the prospective purchaser will be encouraged to approach the pool for an independent opinion on whether the transaction is appropriate and in creditors’ best interests. The pool member’s view will not be binding on the administrator, but will form part of the SIP16 disclosure. The opinions will be in the form of one of two standards outcomes, either a ‘no reason not to proceed’ letter or in the alternative a letter indicating that the pool member has not seen sufficient evidence to make that statement.
The intention of the SIP is to tackle creditor distrust of pre-packs with increased transparency.
However, consistently, IPs have expressed some concerns about the difficulties that may be encountered in marketing a business whilst avoiding the damage that might flow from publicity of an impending insolvency. The new SIP significantly reinforces the emphasis placed on appropriate marketing and there will be an onus on practitioners to justify departures from the marketing essentials. We would anticipate the need for more transparent marketing to be the most challenging area for practitioners.
The SIP itself is a standalone document for IPs to follow when considering a pre-packaged sale. Additional guidance for potential users of the pre-pack pool is being prepared in the form of a Q&A explaining that process for them in greater detail. We intend to include both documents within the latest edition of our handbook.
Our handbook is scheduled for publication in July and will include the Code of Ethics for Insolvency Practitioners, the latest Statements of Insolvency Practice (including SIP16), Insolvency Guidance Papers, our Technical Helpsheets and other non-statutory regulation and guidance, such as our PII and Client Money Regulations.
The Insolvency Practitioners’ Handbook is a “one-stop-shop” for IPs and their professional advisers and will be available via the Lexis on-line bookstore and as an ebook.
0330 161 1234