Updates to Insolvency Guidance Papers 1 and 4
Changes to two Insolvency Guidance Papers have been announced and will come into effect on 2 December 2024.
Under the Joint Insolvency Committee’s (JIC’s) strategic work plan, Insolvency Guidance Papers (IGPs) are subject to periodic review to ensure they remain relevant to changing legislation and market conditions. A revised IGP approved by JIC and each of the Recognised Professional Bodies (RPBs) relating to the control of cases has today been issued by each of the RPBs.
Revised IGP 1 – Control of cases
Despite significant shifts in the insolvency market and profession, IGP 1 – Control of cases published in 2005 has remained unchanged.
The principal revisions to IGP 1 recognise the move to a more risk-based approach to case management and monitoring, the increased use of outsourcing and remote case processing and the growth of volume or large-scale case administration.
The revised IGP 1 includes new sections on risk management and ‘volume’ practice and expands on the types of delegation contemplated. The style and language used have also been modernised to make it clearer and easier to apply.
The revised IGP comes into effect on 2 December 2024.
Withdrawal of IGP 4
The JIC has also reviewed IGP 4 - Systems for control of accounting and other business records and has decided to withdraw it. The guidance provided in the IGP is no longer useful, as its focus is primarily on hard copy records and only sets out steps that any competent insolvency practitioner should already be taking.
Insolvency practitioners are reminded that Statement of Insolvency Practice (SIP) 2 - Investigations by Office Holders in Administrations and Insolvent Liquidations and the Submission of Conduct Reports by Office Holders, imposes an obligation on office holders to locate, secure and list the company’s books and records, regardless of their format. The withdrawal of the IGP does not remove the obligations set out in SIP 2.
IGP 4 is withdrawn with effect from 2 December 2024.
