Insolvency technical update: July 2025

Read our latest insolvency technical update – your round-up of the recent developments in insolvency.

Code of ethics for insolvency practitioners

A revised code of ethics for insolvency practitioners has been issued and will come into effect on 1 October 2025. The revisions relate primarily to professional behaviour, role and mindset and technology.

Advance notification of redundancies - HR1

The Insolvency Service have announced that form HR1 will be moving to digital submission only. From early September 2025 it’ll be possible to submit the HR1 form digitally via gov.uk and from 1 December 2025 paper based forms won’t be accepted.

AML: National risk assessment

HM Treasury have published the latest National Risk Assessment (NRA) of money laundering and terrorist financing. The NRA sets out how key financial crime risks have evolved since the last assessment in 2020 and outlines the steps taken across sectors to mitigate them.

The latest assessment retains the risk rating for insolvency services as High for money laundering risk and low risk for Terrorist financing risk. IPs are reminded of the importance of robust AML/CTF activity and staying up to date with guidance.

AML: Changes to DAML Threshold

The Proceeds of Crime (Money Laundering) (Threshold Amount) (Amendment) Order 2025 came into force on 31 July 2025 and increases the threshold amount of criminal property, which a regulated person can return to a customer or a client for the purposes of terminating their business relationship under section 339A of the Proceeds of Crime Act 2002 (POCA). The threshold increases from £1,000 to £3,000. 

Removing personal details from the Companies House register

Applications can now be made to remove the day of the date of birth, signatures or business occupations from historic documents on the Companies House Register. Guidance has been updated to include these new processes which costs £30 per document.

Ceasing to practice: Helpsheet

Retiring or ceasing your practice for other reasons? You need to be aware of ethical and practical implications of doing so. A new helpsheet from ICAS considers these important aspects.

Insolvency service investigation and enforcement strategy

The Insolvency Service has launched a new investigation and enforcement strategy covering 2026 to 2031 which will see the agency play an wider role in tackling economic crime and improving corporate standards.

Draft debt recovery (mental health moratorium) (Scotland) regulations: consultation - summary report

The Scottish government have published a summary of responses to the consultation on the proposed Mental Health Moratorium. They’ll now continue to engage with stakeholders to further develop the draft Mental Health Moratorium Regulations.

Scottish Charitable Incorporated Organisations (SCIOs) – dissolution regulations amendments: consultation

The Scottish government are consulting on proposed changes to the solvent and insolvent dissolution of SCIOs. Read what’s being planned and give your views

Legal update

We understand that permission to appeal has been sought in Noal SCSp & Ors V Novalpina Capital LLP & Ors. Together with other RPBs we’re currently considering the implications and we expect to issue guidance shortly.