Insolvency Act 1986

390 Persons not qualified to act as insolvency practitioners. E+W+S

(1) A person who is not an individual is not qualified to act as an insolvency practitioner.

(2) A person is not qualified to act as an insolvency practitioner at any time unless at that time—

(a) he is authorised so to act by virtue of membership of a professional body recognised under section 391 below, being permitted so to act by or under the rules of that body, or

(b) he holds an authorisation granted by a competent authority under section 393.

(3) A person is not qualified to act as an insolvency practitioner in relation to another person at any time unless—

(a) there is in force at that time security or, in Scotland, caution for the proper performance of his functions, and

(b) that security or caution meets the prescribed requirements with respect to his so acting in relation to that other person.

(4) A person is not qualified to act as an insolvency practitioner at any time if at that time—

(a) he has been adjudged bankrupt or sequestration of his estate has been awarded and (in either case) he has not been discharged,

(b) he is subject to a disqualification order made [F1 or a disqualification undertaking accepted] under the M1 Company Directors Disqualification Act 1986 [F2 or to a disqualification order made under Part II of the Companies (Northern Ireland) Order 1989][F3 or to a disqualification undertaking accepted under the Company Directors Disqualification (Northern Ireland) Order 2002], or

(c) he is a patient within the meaning of Part VII of the M2 Mental Health Act 1983 or [F4 section 329(1) of the Mental Health (Care and Treatment)(Scotland) Act 2003][F5 or has had a guardian appointed to him under the Adults with Incapacity (Scotland) Act 2000 (asp 4).]

[F6 (5) A person is not qualified to act as an insolvency practitioner while a bankruptcy restrictions order is in force in respect of him.]

Textual Amendments

F1 Words in s. 390(4)(b) inserted (2.4.2001) by 2000 c. 39, s. 8, Sch. 4 Pt. II para. 16(2)(a); S.I. 2001/766, art. 2 (subject to transitional provisions in art. 3)

F2 Words in s. 390(4)(b) inserted (2.4.2001) by 2000 c. 39, s. 8, Sch. 4 Pt. II para. 16(2)(b); S.I. 2001/766, art. 2 (subject to transitional provisions in art. 3)

F3 Words in s. 390(4)(b) inserted (1.9.2004 with application as mentioned in art. 1(2)) by The Insolvency Act 2000 (Company Directors Disqualification Undertakings) Order 2004 (S.I. 2004/1941, art. 3, Sch. para. 3

F4 Words in s. 390(4)(c) substituted (27.9.2005 for S. and 5.10.2005 otherwise) by The Mental Health (Care and Treatment) (Scotland) Act 2003 (Modification of Enactments) Order 2005 (S.S.I. 2005/465), art. 2, Sch. 1 para. 18(3) and The Mental Health (Care and Treatment) (Scotland) Act 2003 (Consequential Provisions) Order 2005 (S.I. 2005/2078), arts. 1, 15, Sch. 1 para. 3(3)

F5 Words in s. 390(4)(c) inserted (S.) (1.4.2002) by 2000 asp 4, s. 88(2), Sch. 5 para. 18; S.S.I. 2001/81, art. 3, Sch. 2

F6 S. 390(5) added (1.4.2004) by 2002 c. 40, ss. 257(3), 279, Sch. 21 para. 4 (with s. 249(6)); S.I. 2003/2093, art. 2(2), Sch. 2 (subject to arts. 3-8 (as amended by S.I. 2003/2332, art. 2))

Modifications etc. (not altering text)

C1 s.390 applied with modifications by S.I. 1986/1999, art. 3, Sch. 1 Pt. II

C2 S. 390(2)(3) modified by S.I. 1990/1392, art. 7

Marginal Citations

M1 1986 c. 46.

M2 1983 c. 20.