The Deregulation Act 2015 for insolvency professionals

The Deregulation Act 2015 (DA 2015) received Royal Assent on 26 March 2015. DA 2015 applies to a huge range of regulations in the UK—its purpose being to try to reduce the administrative burden on businesses, organisations and individuals by repealing a raft of legislation which is no longer of practical use.

In terms of insolvency and restructuring, DA 2015 only touches upon a small portion of the insolvency legislation. Some of the Act comes into effect in May 2015, the rest is to be brought into effect by way of separate statutory instruments.

We set out below in brief where DA 2015 affects insolvency legislation specifically.

The applicable insolvency sections

There are two sections and one schedule that apply to insolvency in DA 2015:

  • s 17—authorisation of insolvency practitioners
  • s 19—insolvency and company law: miscellaneous
  • Schedule 6 —insolvency and company law

In summary the main changes relating to insolvency are:

  • the ability for insolvency practitioners (IPs) to gain only partial authorisation, either over a company or an individual rather than both as the case currently is
  • the Secretary of State will no longer directly authorise insolvency practitioners—in future, all IPs will be authorised by recognised professional bodies
  • clarification on who is required to be served with notice of administration
  • a change to the after acquired property provisions regarding the use of bank accounts by bankrupts
  • amends to allow a company or director to appoint an administrator despite the presentation of a winding up petition, if the petition was presented during an interim moratorium
  • amendments concerning the procedure around appointing interim receivers and special managers in bankruptcy
  • amendments to the Company Directors Disqualification Act 1986 to allow the Secretary of State to obtain information direct from any person without requiring authority from the office holder
  • amends to allow the release of an administrator where the unsecured creditors' only interest is in the prescribed part

Further Reading

If you are a LexisPSL Subscriber, click the link below for a more detailed analysis of the DA 2015 and its provisions relevant to insolvency professionals:

The Deregulation Act 2015

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First published on LexisPSL Restructuring and Insolvency

Filed Under: Insolvency , Reform

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