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Insolvency News, Issue 4 June 2021

This issue includes the latest bulletins from HMRC, a new eligibility criteria for Debt Relief Orders and answers to your frequently asked questions relating to the updated SIP 9.

New: Insolvency bulletins from HMRC

HMRC has published two updates for IPs. The first provides guidance on recording tax and national insurance due on a preferential dividend paid to the former employees of an insolvent entity. The second is an update to the previous bulletin: ‘Introduction of electronic banking for IPs making dividend payments’ designed to clarify questions from IPs.

Changes to the eligibility criteria for Debt Relief Orders

Debt Relief Orders (DROs) allow individuals to deal with their debts when they can’t afford to pay them. From 29 June 2021, the eligibility criteria for a DRO will change. Debtors with a monthly surplus income of £75, debts of up to £30,000 and with a maximum property value of up to £2,000 will now be eligible for this personal debt solution.

SIP 9 FAQs

Following a Joint Insolvency Committee (JIC) consultation, changes were made to Statement of Insolvency Practice (SIP) 9 with effect from 1 April 2021. Working alongside other Recognised Professional Bodies (RPBs), we have addressed the frequently asked questions surrounding the practical operation of the revised SIP 9 and provided our collective thoughts on the applied impact of the changes to SIP 9.

SIP quiz for IPs

Get ready to test your team’s knowledge on the recent changes to SIPs with our new quiz. The answers for the quiz are included within the notes section of the PPT.

How to approach regulated firms

The FCA has published its finalised guidance for IPs on how to approach insolvencies of regulated firms (FG21/4). The guidance aims to achieve better outcomes on firm failures by helping IPs to understand how to deal with regulated firms in line with the FCA’s expectations.

Virtual roadshows 2021

The Restructuring and Insolvency Community’s ‘must-attend’ annual roadshows are returning for another year. This year’s roadshows will cover legal and compliance updates and Allison Broad and Alison Morgan from ICAEW’s Quality Assurance Department (QAD) will outline the current hot topics for restructuring and IPs. 

Listen again: Anti-money laundering requirements for IPs: what to be aware of

Discover how money laundering regulations impact you as an IP.

Listen again: Pre-pack reforms and common issues from SIP 16 reports

ICAEW’s Quality Assurance Department (QAD) continues to see breaches of SIP 16, notwithstanding its longstanding requirements. This webinar helps IPs and their staff avoid these issues and raises awareness of future requirements following reforms to the pre-pack regime.

Business recovery: These are the people we are dealing with

Out of necessity, IPs are focused on compliance and best practice. But their interactions with people who have built businesses are often deeply personal – this is why empathy is vital when advising those involved in a business in distress.

Regulation and conduct through difficult times

The 2020 ICAEW Regulatory Board (IRB) Annual Report highlighted the hard work and efforts to maintain minimal disruption to ICAEW’s regulatory and disciplinary work, despite the most unusual of years. In this article, we talk to Michael Caplan QC, Chair of the IRB, about its latest annual report and the role of the IRB.

Follow our new LinkedIn page

Follow our new Regulation and Conduct LinkedIn page to keep up to date with the very latest regulatory updates.