Insolvency Technical Update - June 2018

The Bankruptcy Fees (Scotland) Regulations 2018 (SSI 2018/127) came into effect on 1 June 2018 and will apply to trust deeds executed on or after 1 June 2018 and sequestration petitions presented or debt applications made on or after 1 June 2018.

The PPF has issued R&I Guidance Note 4 setting out how they will approach to CVA proposals.

Official Receivers Offices will cease to use the DX mailing system from 29 June 2018. All mail will be centralised and digitised through their Birmingham office. After 29 June, post for Official Receivers Offices should be sent to PO Box addresses.

The Department for Digital, Culture, Media and Sport has issued a consultation on whether the current exemption from paying data protection charges to the Information Commissioners Office remain appropriate and whether there should be any new exemptions. This is an opportunity to address the anomaly where IPs are required to pay a fee due to the personal nature of appointments while at the same time being caught by fees payable by their firm and the insolvent entity. You may wish to submit a response recommending suggesting exemptions be extended to the IP personally and an insolvent entity on the basis that the firm is to all practical purposes the data controller and that the firm pays a charge. The consultation closes at 4pm on 1 August 2018.

A draft Scottish Statutory Instrument has been laid in the Scottish Parliament which would give effect to the Standard Financial Statement being used as the CFT for the purposes of calculating debtor contributions in Scottish insolvency solutions and DAS. If approved by the Scottish Parliament, the SFS would be used from 29 October 2018.

A draft Scottish Statutory Instrument has been laid in the Scottish Parliament which would amend various provisions in respect of DAS. This includes a requirement that those applying for approval as money advisers must have in place appropriate arrangements to ensure Financial Conduct Authority compliance, if appropriate, and provides that approval may be revoked where such arrangements are not maintained. It would also require all money advisers to have appropriate regard to guidance issued by the FCA. If approved by the Scottish Parliament, the new regulations would be effective from 29 October 2018.

The Regulations make provision for parts of the Insolvency Act 1986 to apply to registered societies and charitable incorporated organisations which are in housing administration. The Regulations will come into force on 4 July 2018.

Instant Access Properties Ltd (in liquidation) v Rosser and others [2018] EWHC 756 (Ch) The High Court considered whether two men were shadow directors of an insolvent property development company and the effect this had on the company fiduciary duties as well as whether their behaviour breached those duties. (via Pinsent Masons)