Statutory Instruments
2009 No. 3081
Provision Of Services
Insolvency
The Provision of Services (Insolvency Practitioners) Regulations 2009
Made
23rd November 2009
Laid before Parliament
25th November 2009
Coming into force
28th December 2009
These Regulations are made in the exercise of powers conferred by section 2(2) of the European Communities Act 1972( 1 ) and sections 389A, 390, 392, 393, 415A and 419 of the Insolvency Act 1986( 2 ).
The Secretary of State is a Minister designated( 3 ) in relation to services in the internal market for the purposes of section 2(2) of the European Communities Act 1972.
Accordingly, the Secretary of State makes the following Regulations.
Citation and commencement
1. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Amendments to the Insolvency Act 1986
2. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Amendment to article 3 of the Insolvency Practitioners and Insolvency Services Account (Fees) Order 2003
3. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Amendments to the Insolvency Practitioners Regulations 2005
4.The Insolvency Practitioners Regulations 2005( 4 ) are amended as set out in the Schedule to these Regulations.
Transitional provision
5. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Ian Lucas
Minister for Business and Regulatory Reform
Department for Business, Innovation & Skills
Regulation 4
SCHEDULE Amendments to the Insolvency Practitioners Regulations 2005
1. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2. The principal Regulations are amended as set out in paragraphs 3 to 9 of this schedule.
Amendment to regulation 7
3. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Amendments to regulation 8
4. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Amendment to regulation 10
5. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Amendment to regulation 11
6. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Amendment to regulation 12
7. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Amendments to Schedule 2
(2) In paragraph 1 (interpretation) after the definition of “insolvent’s assets” insert—
“ “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; ” .
(3) After paragraph 2 add—
“ Requirement for bond or professional liability insurance
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; or
(b) where the insolvency practitioner is already established in another EEA state and is already covered in that state by professional liability insurance or a guarantee, professional liability insurance or a guarantee which complies with paragraph 8A. ” .
(4) In paragraph 3 (requirement for bonding–terms of the bond)—
(a) for the title substitute “ Terms of the bond ”; and
(b) for sub-paragraph (1) substitute—
“ (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. ” .
(5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(6) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(7) In paragraph 10 (retention of bond by recognised professional body or competent authority)—
(a) for “The bond referred to in paragraph 3 shall” substitute “(1) The documents in sub-paragraph (2) or a copy must”; and
(b) after sub-paragraph (b) add—
“ (2) The documents in this sub-paragraph are—
(a) the bond referred to in paragraph 3;
(b) where the Secretary of State has determined under paragraph 8B(4)—
(i) the document in paragraph 8B(1)(a) and (b); and
(ii) the notice under paragraph 8B(4);
(c) where the Secretary of State has determined under paragraph 8C(4)
(i) the documents in paragraphs 8B(1)(a) and (b) and 8C(1)(a) and (b);and
(ii) the notice under paragraph 8C(3).
(3) The document in sub-paragraph (2) or a copy of it may be sent electronically. ” .
(8) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Amendments to Schedule 3
9. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1972 c.68 , to which there are amendments not relevant to these Regulations.
1986 c.45 . Section 389A was inserted by the Insolvency Act 2000 (c.23) , section 4(1) and (4). Section 415A was inserted by section 270 of the Enterprise Act 2002 (c. 40) . There are amendments to sections 389A, 390 and 392 which are not relevant to these Regulations.