Revising the insolvency Code of Ethics
The Joint Insolvency Committee (JIC) consulted on a revised version of the insolvency Code of Ethics, with the views of insolvency practitioners and other stakeholders.
The draft insolvency Code of Ethics was developed by a JIC working group comprising a variety of insolvency stakeholders including HM Revenue and Customs, Max Recovery and representatives from the recognised professional bodies (RPBs).
An explanatory note was produced to accompany the consultation which sets out in more detail the background to the need to revise the Code and the approach adopted in developing the draft Code.
The JIC working group also recognised that activities leading to insolvency appointments, particularly in the personal/consumer debt insolvency arena, bear little recognition to the landscape when the Code was introduced. Services offered by firms or groups in which IPs operate are far greater than the accountancy or legal practice with which IPs have been traditionally associated.
The sections within the Code dealing with obtaining specialist advice and services, fees and other types of remuneration and obtaining insolvency appointments are of key concern given developments since the Code was last reviewed. It is felt that this area is of such fundamental importance that specific consultation on stakeholder views should be undertaken prior to deciding on whether the Code should be revised in these areas. Further context to consultation in this area is also provided in the explanatory note. It is intended that the revised insolvency Code of Ethics will apply UK wide.
The consultation closed on 25 July 2017.