The Compendium

A Comprehensive Companion for All in the Insolvency and Restructuring Profession

One of the Statements of Insolvency Practice (SIPs), SIP 7, states that receipts and payments accounts should show categories of items under headings appropriate for the insolvency appointment.

[See ‘Statements of Insolvency Practice’ and ‘SIPs’.]

Recognised Professional Body

Under the provisions of the Insolvency Act 1986, the Secretary of State recognises certain independent professional bodies, called ‘Recognised Professional Bodies’ or RPBs, for the purposes of authorising their members to act as Insolvency Practitioners.

The two RPBs in England and Wales are the Insolvency Practitioners Association (IPA) and the Institute of Chartered Accountants of England and Wales (ICAEW).

These RPBs regulate Insolvency Practitioners and authorise them to act as such.

The Insolvency Service has published guidance to assist in the Recognised Professional Bodies’ compliance with the regulatory objectives. An RPB will, when discharging regulatory functions, be required to act in a way which is compatible with the regulatory objectives, and which it considers most appropriate for achieving the following:

  • Having a system of regulating Insolvency Practitioners that secures fair treatment for people affected by their acts, is transparent, accountable, proportionate, and ensures consistent outcomes.
  • Encouraging an independent and competitive Insolvency Practitioner profession whose members provide high quality services at a fair and reasonable cost, act transparently and with integrity, and consider the interests of all creditors in any particular case.
  • Promoting the maximisation of, and promptness of returns to, creditors.
  • Protecting and promoting the public interest.

The Scottish RPB is the Institute of Chartered Accountants of Scotland.

The Recognised Professional Body is also sometimes known as an ‘Authorising Body’.

[See ‘Insolvency Act’, ‘Insolvency Service’, ‘Insolvency Practitioners Association’, ‘IPA’, Institute of Chartered Accountants of England and Wales’, ‘ICAEW’, ‘RPB’, ‘Authorising Body’ and ‘Insolvency Practitioner’.]