Insolvency Technical Update - September 2018

An amended draft of the Common Financial Tool (Scotland) Regulations 2018 has been laid the Scottish Parliament and, subject to Parliamentary approval, is due to come into effect on 1 April 2019. The Regulations will introduce the Standard Financial Statement to be used as the Common Financial Tool in relation to Scottish debt relief and statutory debt payment plans.

The Debt Arrangement Scheme (Scotland) Amendment Regulations 2018 have now been approved by the Scottish Parliament and will commence on 29 October 2018. The Accountant in Bankruptcy have produced a helpful table setting out the effect of the Regulations.

The Insolvency Service has introduced changes from 5 September 2018 which means that Bankruptcy and Compulsory Liquidation cases will only come off ISCIS on-line once the IP release date has been entered onto their case management system.

The interest rate paid on Insolvency Service Account balances increased from 0.5% to 0.75% with effect from 10 September 2018.

The Department for Business, Energy and Industrial Strategy has issued a technical guidance note setting out the implications for cross-border insolvency in the event of a no-deal Brexit.

The United Nations Commission on International Trade Law (UNCITRAL) has published the adopted text of the UNCITRAL Model Law on recognition and enforcement of insolvency-related judgments. This is complementary to the UNCITRAL Model Law on Cross-Border Insolvency (1997).

The Insolvency Service has updated its guidance to reflect that complaints against insolvency practitioners in Northern Ireland are now to be submitted through the complaints gateway and not direct to the insolvency practitioner’s recognised professional body.

The Insolvency Service has published its Review of Monitoring and Regulation of IPs and made a number of recommendations, particularly in relation to high volume providers. The report also provides conclusions on the effectiveness of each of the recognised professional bodies’ regulation of insolvency practitioners. The report concludes that ICAS is operating effectively when exercising monitoring and regulatory activities and no issues of concern were noted.

McGleish – v – Tough & Leslie Following the Sheriff Appeal Court decision reported in the August Technical Update, it is understood that the decision is being appealed.

Re Videology Limited [2018] EWHC 2186 (Ch) The High Court has decided that the centre of main interests of a subsidiary company should be considered independently from that of its parent company re-affirming that the COMI of companies within a group must be separately assessed. The Court also said that it can be presumed that the COMI of a company will be where its registered office is located unless indicated otherwise by objective factors which are apparent to third parties. (via Pinsent Masons)

One Blackfriars Limited [2018] EWHC 901 (Ch) The High Court considered a claim brought by a liquidator against the former Administrators of the company. (via Moon Beever)

Lock v Aylesbury Vale District Council [2018] EWHC 2015 (Ch) The High Court has set aside a bankruptcy order obtained by a local authority over unpaid council tax because it would serve no useful purpose - the debtor had no assets and there was nothing to suggest that any investigation into the debtor's affairs would reveal anything. (via Pinsent Masons).