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Q&A from the 16 May 2022 IPs' insolvency compliance, and SIP 11 annual review requirements webinar


Published: 14 Jul 2022

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Here's the Q&A from the recent Restructuring & Insolvency community webinar, IPs' insolvency compliance, and SIP 11 annual review requirements which took place on 16 May 2022.

Q. Why is a monitoring visit ignored?

A. Regulation 3.13 doesn't remove the requirement to complete an insolvency compliance review (ICR) in the year of an IP's monitoring visit. But there is flexibility in how you approach your ICR. So in the year you have a monitoring visit, you may choose to focus your ICR on any key issues found on the visit, to test if your remedial action has been effective. Alternatively you may want to review case types that weren't reviewed during your monitoring visit. 

Q. What are your expectations (if any) for ICRs for a non-appointment taking licence holder at a non-appointment taking firm?

A. Non-appointment takers won't have ICRs as they don't have any appointments to review. They nevertheless have to comply with other licensing requirements such as CPD.

Q. Will you send out notice when the help sheet and guidance notes are sent out?

A. The revised help sheets will be uploaded to our webpage (link below) in the next few weeks, replacing those already available for use. You can also find a detailed checklist that can be used for cold file reviews from the same page under the 'Further support' section. We will publicise when the revised help sheets are available.

Q. Could ICAEW be asked to do the ICR at a individual's cost?

A. ICAEW doesn't offer a service to complete ICRs at present.

Q. Will you be offering this when we have one regulator assuming not ICAEW

A. We'll have to see what happens in the future.

Q. What do you say to the diligent IPs who do their ICRs in a timely and robust manner, who see those IPs who don't bother doing an ICR and then get fined only £1,500 ? And when questioned, the delinquent IP states that it is cheaper to take the fine than to outsource or bother doing an ICR?

A. The vast majority of our IPs want to do the right thing. The few that don't have an ICR in the requisite period may receive a publicised regulatory penalty. Recurrent offenders may face more severe penalties. Failing to have an ICR can be a false economy. ICRs have numerous benefits and can ensure your documents and processes are up to date and fit for purpose, thus avoiding potential breaches of the Insolvency Act, Rules and / or SIPs, and potential complaints.

Q. What is a cold review?

A. It's a review of casework that's been completed - so either a closed case or a review of the work undertaken to date on an open case.

I think it would be a good idea to send out a tick list for IPs to use to cover the matters expected to be completed by them. In a simple format with note attached.

The revised help sheets will be uploaded over the next few weeks which suggest many, if not all, of the areas to consider. The weblink has the current versions which you can use.

Q. How about ICAEW setting up a panel of sole IPs, who could do each others?

A. In our experience, there are a limited number of IPs who complete ICRs for other IPs. Some IPs don't want potential competitors reviewing their work. Given the current uncertainty about the future of insolvency regulation this isn't something we can consider at the present time.

Other questions were answered live and are included in the recording Please refer to the help sheet on the webpages which includes an FAQ covering all of those and others.