SCHEDULE
Regulation 4
Amendments to the Insolvency Practitioners Regulations 2005
1. In this schedule—
“the principal Regulations” mean the Insolvency Practitioners Regulations 2005 and any reference to a numbered Part or regulation is a reference to a Part or regulation so numbered in the principal Regulations;
2. The principal Regulations are amended as set out in paragraphs 3 to 9 of this schedule.
3. Amendment to regulation 7
(1) Regulation 7 (requirements as to education and training – applicants who have never previously been authorised to act as insolvency practitioners) is amended as follows.
(2) In paragraph (3)(b) for “7000” substitute “2000”.
4. Amendments to regulation 8
(1) Regulation 8 (requirements relating to education and training etc. – applicants previously authorised to act as insolvency practitioners) is amended as follows.
(2) In paragraph (2)(a) for “500” substitute “450”.
(3) After regulation 8 add—
“Requirements relating to education and training etc. – further authorisation to act as insolvency practitioners
8A.—(1) The requirements prescribed under section 393(2)(b) of the Act in relation to further authorisation under section 393(3A) of the Act are as set out in this regulation.
(2) The individual must—
(a)
(a) have acquired within the period in regulation 11(1A) 150 hours of any combination of the following types of experience—
(i) experience as an office-holder;
(ii) higher insolvency work experience;
(iii) regulatory work experience; or
(iv) advisory work experience; and
(b)
(b) have completed within the period in regulation 11(1A) at least 36 hours of continuing professional development of which 18 hours must fall into the categories in regulation 8(3)(b)(i) to (v).
(3) In the first period after the grant of an authorisation an individual must comply with—
(a)
(a) paragraph (2)(a) where the number of hours is 125; and
(b)
(b) paragraph (2)(b) where the number of hours are 30 and 15 respectively.”.
5. Amendment to regulation 10
Regulation 10 (maximum period of authorisation) is revoked.
6. Amendment to regulation 11
(1) Regulation 11 (returns by insolvency practitioners authorised by the Secretary of State) is amended as follows.
(2) In paragraph (1)—
(a)
(a) for “of 12 months ending on 31st December” substitute “in paragraph (1A)”;
(b)
(b) in sub-paragraph (b) at the end, omit “and”; and
(c)
(c) after sub-paragraph (c) after “activity” where it last occurs, insert—
“; and
(d)
(d) the number of hours of any experience of the types in regulation 8A(2)(a)(i) to (iv).
1A The period is the period of 12 months ending two months before the anniversary of the grant of the authorisation or the last further authorisation”.
(3) In paragraph (2) for “within one month of” substitute “no later than 6 weeks before”.
7. Amendment to regulation 12
(1) Regulation 12 (requirements for security and caution for the proper performance of the functions of an insolvency practitioner etc.) is amended as follows.
(2) After paragraph (2) insert—
“3 Where, in accordance with section 390(2)(c) of the Act a person is qualified to act as an insolvency practitioner by virtue of an authorisation granted by the Department of Enterprise, Trade and Investment for Northern Ireland under Article 352 of the Insolvency (Northern Ireland) Order 1989, this Part applies in relation to that person as if that authorisation had been granted pursuant to section 393 of the Act.”.
8. Amendments to Schedule 2
(1) Schedule 2 (requirements for security or caution and related matters) is amended as follows.
(2) In paragraph 1 (interpretation) after the definition of “insolvent’s assets” insert—
““professional liability insurance” means insurance taken out by the insolvency practitioner in respect of potential liabilities to the insolvent and third parties arising out of acting as an insolvency practitioner;”.
(3) After paragraph 2 add—
“Requirement for bond or professional liability insurance
2A. Where an insolvency practitioner is appointed to act in respect of an insolvent there must be in force—
(a) a bond in a form approved by the Secretary of State which complies with paragraph 3; or
(b) where the insolvency practitioner is already established in another EEA state and is already covered in that state by professional liability insurance or a guarantee, professional liability insurance or a guarantee which complies with paragraph 8A.”.
(4) In paragraph 3 (requirement for bonding–terms of the bond)—
(a)
(a) for the title substitute “Terms of the bond”; and
(b)
(b) for sub-paragraph (1) substitute—
“1 The bond must—
(a) be in writing or in electronic form;
(b) contain provision whereby a surety or cautioner undertakes to be jointly and severally liable for losses in relation to the insolvent caused by—
(i) the fraud or dishonesty of the insolvency practitioner whether acting alone or in collusion with one or more persons; or
(ii) the fraud or dishonesty of any person committed with the connivance of the insolvency practitioner; and
(c) otherwise conform to the requirements of this paragraph and paragraphs 4 to 8.”.
(5) After paragraph 8 add—
“Compliance of professional liability insurance cover in another EEA state
8A. Where paragraph 2A(b) applies to an insolvency practitioner, the professional liability insurance or guarantee complies with this paragraph if the Secretary of State determines that it is equivalent or essentially comparable to the bond referred to in paragraph 3 as regards—
(a) its purpose, and
(b) the cover it provides in terms of—
(i) the risk covered,
(ii) the amount covered, and
(iii) exclusions from the cover.
Procedure for determining compliance of professional liability...
