Search Legislation

The Insolvency Practitioners Regulations 2005

 Help about what version

What Version

 Help about advanced features

Advanced Features

Changes over time for: The Insolvency Practitioners Regulations 2005 (Schedules only)

 Help about opening options

Changes to legislation:

There are currently no known outstanding effects for the The Insolvency Practitioners Regulations 2005. Help about Changes to Legislation

Close

Changes to Legislation

Revised legislation carried on this site may not be fully up to date. At the current time any known changes or effects made by subsequent legislation have been applied to the text of the legislation you are viewing by the editorial team. Please see ‘Frequently Asked Questions’ for details regarding the timescales for which new effects are identified and recorded on this site.

Regulation 4

SCHEDULE 1E+W+SREGULATIONS REVOKED

  • M1The Insolvency Practitioners Regulations 1990

  • M2The Insolvency Practitioners (Amendment) Regulations 1993

  • M3The Insolvency Practitioners (Amendment) Regulations 2002

  • M4The Insolvency Practitioners (Amendment) (No 2) Regulations 2002

  • M5The Insolvency Practitioners (Amendment) Regulations 2004

Regulation 12

SCHEDULE 2E+W+SREQUIREMENTS FOR SECURITY OR CAUTION AND RELATED MATTERS

PART 1 E+W+SInterpretation

InterpretationE+W+S

1.  In this Schedule—

cover schedule” means the schedule referred to in paragraph 3(2)(c);

the insolvent” means the individual or company in relation to which an insolvency practitioner is acting;

general penalty sum” shall be construed in accordance with paragraph 3(2)(b);

insolvent's assets” means all assets comprised in the insolvent's estate together with any monies provided by a third party for the payment of the insolvent's debts or the costs and expenses of administering the insolvent's estate;

[F1“professional liability insurance” means insurance taken out by the insolvency practitioner in respect of potential liabilities to the insolvent and third parties arising out of acting as an insolvency practitioner;]

specific penalty sum” shall be construed in accordance with paragraph 3(2)(a).

PART 2E+W+SRequirements relating to security and caution

Requirements in respect of security or cautionE+W+S

2.  The requirements in respect of security or caution for the proper performance of the duties of insolvency practitioners prescribed for the purposes of section 390(3)(b) shall be as set out in this Part.

[F2Requirement for bond F3...E+W+S

2A.  Where an insolvency practitioner is appointed to act in respect of an insolvent there must be in force—

(a)a bond in a form approved by the Secretary of State which complies with paragraph 3; F4...

F4(b). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .]

[F5Terms of the bond]E+W+S

3.[F6(1) The bond must—

(a)be in writing or in electronic form;

(b)contain provision whereby a surety or cautioner undertakes to be jointly and severally liable for losses in relation to the insolvent caused by—

(i)the fraud or dishonesty of the insolvency practitioner whether acting alone or in collusion with one or more persons; or

(ii)the fraud or dishonesty of any person committed with the connivance of the insolvency practitioner; and

(c)otherwise conform to the requirements of this paragraph and paragraphs 4 to 8.]

(2) The terms of the bond shall provide—

(a)for the payment, in respect of each case where the insolvency practitioner acts, of claims in respect of liabilities for losses of the kind mentioned in sub-paragraph (1) up to an aggregate maximum sum in respect of that case (“the specific penalty sum”) calculated in accordance with the provisions of this Schedule;

(b)in the event that any amounts payable under (a) are insufficient to meet all claims arising out of any case, for a further sum of £250,000 (“the general penalty sum”) out of which any such claims are to be met;

(c)for a schedule containing the name of the insolvent and the value of the insolvent's assets to be submitted to the surety or cautioner within such period as may be specified in the bond;

(d)that where at any time before the insolvency practitioner obtains his release or discharge in respect of his acting in relation to an insolvent, he forms the opinion that the value of that insolvent's assets is greater than the current specific penalty sum, a revised specific penalty sum shall be applicable on the submission within such time as may be specified in the bond of a cover schedule containing a revised value of the insolvent's assets;

(e)for the payment of losses of the kind mentioned in sub-paragraph (1), whether they arise during the period in which the insolvency practitioner holds office in the capacity in which he was initially appointed or a subsequent period where he holds office in a subsequent capacity;

(3) The terms of the bond may provide—

(a)that total claims in respect of the acts of the insolvency practitioner under all bonds relating to him are to be limited to a maximum aggregate sum (which shall not be less than than £25,000,000); and

(b)for a time limit within which claims must be made.

4.  Subject to paragraphs 5, 6 and 7, the amount of the specific penalty in respect of a case in which the insolvency practitioner acts, shall equal at least the value of the insolvent's assets as estimated by the insolvency practitioner as at the date of his appointment but ignoring the value of any assets—

(a)charged to a third party to the extent of any amount which would be payable to that third party; or

(b)held on trust by the insolvent to the extent that any beneficial interest in those assets does not belong to the insolvent.

5.  In a case where an insolvency practitioner acts as a nominee or supervisor of a voluntary arrangement under Part I or Part VIII of the Act, the amount of the specific penalty shall be equal to at least the value of those assets subject to the terms of the arrangement (whether or not those assets are in his possession) including, where under the terms of the arrangement the debtor or a third party is to make payments, the aggregate of any payments to be made.

6.  Where the value of the insolvent's assets is less than £5,000, the specific penalty sum shall be £5,000.

7.  Where the value of the insolvent's assets is more than £5,000,000 the specific penalty sum shall be £5,000,000.

8.  In estimating the value of an insolvent's assets, unless he has reason to doubt their accuracy, the insolvency practitioner may rely upon—

(a)any statement of affairs produced in relation to that insolvent pursuant to any provision of the Act; and

(b)in the case of a sequestration—

(i)the debtor's list of assets and liabilities under section 19 of the Bankruptcy (Scotland) Act 1985 M6;

(ii)the preliminary statement under that Act; or

(iii)the final statement of the debtor's affairs by the interim trustee under section 23 of the Bankruptcy (Scotland) Act 1985.

Marginal Citations

Compliance of professional liability insurance cover in another EEA stateE+W+S

F78A.  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Procedure for determining compliance of professional liability insurance or guaranteeE+W+S

F78B.  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Procedure for determining compliance of supplementary guaranteeE+W+S

F78C.  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Time for notification of determinationsE+W+S

F78D.  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Notification of determination out of timeE+W+S

F78E.  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

PART 3 E+W+SRecords relating to bonding and connected matters

Record of specific penalty sums to be maintained by insolvency practitionerE+W+S

9.—(1) An insolvency practitioner shall maintain a record of all specific penalty sums that are applicable in relation to any case where he is acting and such record shall contain the name of each person to whom the specific penalty sum relates and the amount of each penalty sum that is in force.

(2) Any record maintained by an insolvency practitioner pursuant to this paragraph shall, on the giving of reasonable notice, be made available for inspection by—

(a)any professional body recognised under section 391 of the Act of which he is or was a member and the rules of membership of which entitle or entitled him to act as an insolvency practitioner;

F8(b). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(c)the Secretary of State.

F9(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F9(4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Retention of bond by recognised professional body or competent authorityE+W+S

10.[F10(1)] [F11[F12The bond referred to in paragraph 3] or a copy must] be sent by the insolvency practitioner to—

(a)any professional body recognised under section 391 of the Act of which he is a member and the rules of membership of which entitle him to act as an insolvency practitioner; or

F13(b). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F14[F15(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(3) [F16The bond referred to in paragraph 3] or a copy of it may be sent electronically.]

Inspection and retention requirements relating to cover schedule – England and WalesE+W+S

11.—(1) This regulation applies to an insolvency practitioner appointed in insolvency proceedings under the Act to act—

(a)in relation to a company which the courts in England and Wales have jurisdiction to wind up; or

(b)in respect of an individual.

(2) The insolvency practitioner shall retain a copy of the cover schedule submitted by him in respect of his acting in relation to the company or, as the case may be, individual until the second anniversary of the date on which he is granted his release or discharge in relation to that company or, as the case may be, that individual.

(3) The copy of a schedule kept by an insolvency practitioner in pursuance of sub-paragraph (2) shall be produced by him on demand for inspection by—

(a)any creditor of the person to whom the schedule relates;

(b)where the schedule relates to an insolvent who is an individual, that individual;

(c)where the schedule relates to an insolvent which is a company, any contributory or director or other officer of the company; and

(d)the Secretary of State.

F17(4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F17(5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Inspection and retention requirements relating to the cover schedule– ScotlandE+W+S

12.[F18(1) Where an insolvency practitioner is appointed to act in relation to a company which is in administration, or for which there is a proposal for a company voluntary arrangement, the practitioner shall retain in the sederunt book kept under rule 1.54 of the Insolvency (Scotland) (Company Voluntary Arrangements and Administration) Rules 2018 (sederunt book), the principal copy of any cover schedule containing entries in relation to the insolvency practitioner so acting.

(1A) Where an insolvency practitioner is appointed to act in relation to a company which is subject to proceedings for winding up, the practitioner shall retain in the sederunt book kept under rule 1.54 of the Insolvency (Scotland) (Receivership and Winding Up) Rules 2018 (sederunt book) the principal copy of any cover schedule containing entries in relation to the insolvency practitioner so acting.]

(2) Where an insolvency practitioner is appointed to act as interim trustee or permanent trustee or as a trustee under a trust deed for creditors, he shall retain in the sederunt book kept for those proceedings, the principal copy of any cover schedule containing entries in relation to his so acting.

Requirements to submit cover schedule to authorising bodyE+W+S

13.—(1) Every insolvency practitioner shall submit to his authorising body not later than 20 days after the end of each month during which he holds office in a case—

(a)the information submitted to a surety or cautioner in any cover schedule related to that month;

(b)where no cover schedule is submitted in relation to the month, a statement either that there are no relevant particulars to be supplied or, as the case may be, that it is not practicable to supply particulars in relation to any appointments taken in that month; and

(c)a statement identifying any case in respect of which he has been granted his release or discharge.

(2) In this regulation “authorising body” means in relation to an insolvency practitioner—

(a)any professional body recognised under section 391 of the Act of which he is a member and the rules of membership of which entitle him to act as an insolvency practitioner; or

F19(b). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Regulation 13

F20SCHEDULE 3E+W+SRECORDS TO BE MAINTAINED - MINIMUM REQUIREMENTS

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Back to top

Options/Help

Print Options

Close

Legislation is available in different versions:

Latest Available (revised):The latest available updated version of the legislation incorporating changes made by subsequent legislation and applied by our editorial team. Changes we have not yet applied to the text, can be found in the ‘Changes to Legislation’ area.

Original (As Enacted or Made): The original version of the legislation as it stood when it was enacted or made. No changes have been applied to the text.

Close

See additional information alongside the content

Geographical Extent: Indicates the geographical area that this provision applies to. For further information see ‘Frequently Asked Questions’.

Show Timeline of Changes: See how this legislation has or could change over time. Turning this feature on will show extra navigation options to go to these specific points in time. Return to the latest available version by using the controls above in the What Version box.

Close

Opening Options

Different options to open legislation in order to view more content on screen at once

Close

Explanatory Memorandum

Explanatory Memorandum sets out a brief statement of the purpose of a Statutory Instrument and provides information about its policy objective and policy implications. They aim to make the Statutory Instrument accessible to readers who are not legally qualified and accompany any Statutory Instrument or Draft Statutory Instrument laid before Parliament from June 2004 onwards.

Close

More Resources

Access essential accompanying documents and information for this legislation item from this tab. Dependent on the legislation item being viewed this may include:

  • the original print PDF of the as enacted version that was used for the print copy
  • lists of changes made by and/or affecting this legislation item
  • confers power and blanket amendment details
  • all formats of all associated documents
  • correction slips
  • links to related legislation and further information resources
Close

Timeline of Changes

This timeline shows the different points in time where a change occurred. The dates will coincide with the earliest date on which the change (e.g an insertion, a repeal or a substitution) that was applied came into force. The first date in the timeline will usually be the earliest date when the provision came into force. In some cases the first date is 01/02/1991 (or for Northern Ireland legislation 01/01/2006). This date is our basedate. No versions before this date are available. For further information see the Editorial Practice Guide and Glossary under Help.

Close

More Resources

Use this menu to access essential accompanying documents and information for this legislation item. Dependent on the legislation item being viewed this may include:

  • the original print PDF of the as made version that was used for the print copy
  • correction slips

Click 'View More' or select 'More Resources' tab for additional information including:

  • lists of changes made by and/or affecting this legislation item
  • confers power and blanket amendment details
  • all formats of all associated documents
  • links to related legislation and further information resources