The Insolvency Practitioners (Amendment and Transitional Provisions) Regulations 2024
Introduction
The Insolvency Practitioners (Amendment and Transitional Provisions) Regulations 2024 (the “Regulations”) were introduced on 5 November 2024 to amend the Insolvency Practitioners Regulations 2005 (the “Principal Regulations”) and make transitional provisions in connection with the amendment.
Key Amendments
The Regulations make the following key amendments to the Principal Regulations:
- Extended scope of the prohibition on acting as an insolvency practitioner: The Regulations extend the prohibition on acting as an insolvency practitioner to individuals who have been found guilty of a serious offence involving VAT or other taxes.
- New grounds for suspension or removal: The Regulations introduce new grounds for the Insolvency Practitioners Code of Ethics Committee to suspend or remove an insolvency practitioner from the insolvency practitioners register. These grounds include:
- engaging in conduct that is likely to diminish public confidence in the insolvency profession
- failing to comply with a requirement imposed by the Insolvency Practitioners Association (IPA)
- failing to pay any money due to the IPA
- Increased monetary penalties: The Regulations increase the maximum monetary penalties that can be imposed on insolvency practitioners for breaches of the Principal Regulations. The maximum penalty for a body corporate is now £1 million, and the maximum penalty for an individual is now £100,000.
Transitional Provisions
The Regulations also include transitional provisions to ensure a smooth transition to the new regime. These provisions include:
- Existing appointments: Individuals who were appointed as insolvency practitioners before the Regulations came into force will not be affected by the new prohibition on acting as an insolvency practitioner.
- Ongoing investigations: Investigations that were commenced before the Regulations came into force will continue to be conducted in accordance with the Principal Regulations.
Conclusion
The Insolvency Practitioners (Amendment and Transitional Provisions) Regulations 2024 introduce a number of important changes to the regulation of insolvency practitioners in the UK. These changes are intended to protect the public interest and maintain public confidence in the insolvency profession.
The Insolvency Practitioners (Amendment and Transitional Provisions) Regulations 2024
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