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Insolvency News, Issue 5 August 2021

This issue includes the latest bulletins from HMRC, new Defence Against Money Laundering guidance for insolvency practitioners and a consultation regarding SIP 3.1 (Individual Voluntary Arrangements).

SIP 3.1 consultation

The Joint Insolvency Committee (JIC) is consulting on changes to Statement of Insolvency Practice 3.1 - Individual Voluntary Arrangements.

JIC undertook a consultation issued in May 2020 which included revisions to SIP 3.1. At that time these revisions had been identified as being relevant changes as part of a review of SIP 3.2 on Company Voluntary Arrangements. No detailed review of SIP 3.1 was carried out. This consultation builds on the work carried out in 2020 and a draft revised SIP 3.1 is now being consulted on, following a detailed review.

We welcome your views on this consultation which is open from 12 August 2021 until 5 November 2021.

New DAML guidance for IPs

ICAEW and the National Crime Agency (NCA) have worked together to produce some new guidance on Defence Against Money Laundering (DAML) requests for IPs.

The guidance relates to DAML requests on truly urgent insolvency matters where there is an intrinsic urgency for an IP to fulfil their duties towards creditors. The guidance also addresses situations where multiple DAML requests are necessary. As a matter of goodwill, the NCA has agreed to prioritise DAMLs in certain truly urgent insolvency cases, but it is important that this escalation process is reserved for only the most urgent of DAML requests; it does not represent an overall change in the statutory timescales to which the NCA operate.

New HMRC bulletins

HMRC has published two updates. The first provides guidance on changes to its liquidation process for Corporation Tax.

The second contains information regarding Disguised Remuneration and the Loan Charge.

FCA takes action against debt packager firms

Following an FCA review of the practices of debt packager firms, five firms have stopped providing regulated debt advice until further notice and the FCA has used formal powers to stop another firm from providing regulated advice.

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 also outline the current hot topics for restructuring and IPs.

Distinguish yourself in the marketplace with an ICAEW IP logo

Two logos are available to help you promote the services you provide: one for individual IPs, and a logo for firms if all the IPs in a practice are licensed by ICAEW. Both full appointment-taking and non-appointment taking IPs licensed by ICAEW can use the logos.

The Insolvency Licensing Committee: fit and proper

In the latest in our series on the work of ICAEW’s regulatory and disciplinary committees, we talk to members of the Insolvency Licensing Committee about its role in upholding the public interest, the value of healthy debate, and how insolvency practitioners can avoid coming before the committee.

A two-way street: reaping the benefits of committee work

Expand your firm’s knowledge and further your personal and career development. Discover the benefits of serving on ICAEW’s regulatory and disciplinary committees.

Follow our new LinkedIn page

Avoid the common mistakes and pitfalls that we see during our monitoring reviews. Follow our new Regulatory and Conduct LinkedIn page.