The Compendium

Under s391 of the Insolvency Act 1986 a ‘direct sanctions order’ can be made if an Insolvency Practitioner has failed to comply with:

• a requirement imposed by the rules of their relevant Recognised Professional Body (each Insolvency Practitioner will register with either the IPA or ICAEW);
• any standards, or code of ethics, for the Insolvency Practitioner’s profession adopted from time to time by the relevant Recognised Professional Body.

A ‘direct sanctions order’ can also be made by an RPB if they consider that:

• a person acting as such is not a .t and proper person to act as an Insolvency Practitioner;
• a person acting as such is a .t and proper person to act as an Insolvency Practitioner only in relation to companies, but the person’s authorisation is not so limited; or
• a person acting as such is a .t and proper person to act as an Insolvency Practitioner only in relation to individuals, but the person’s authorisation is not so limited.

An RPB can also act if they consider it is appropriate for an Insolvency Practitioner to be suspended for a period, or until one or more requirements are complied with.

An RPB can impose restrictions on the person acting as an Insolvency Practitioner.

[See ‘Recognised Professional Body’, ‘Authorising Body’, ‘RPB’, Insolvency Practitioner’, ‘IPA’ and ‘ICAEW’.]

Schedules

The Schedules at the back of each statute deal with detail that is otherwise not included in the body of the Act, Rules, etc.

A great example is Schedule B1 at the end of the Insolvency Act 1986. When the Enterprise Act became law in 2002 a ‘new type’ of Administrator was created, focusing on the restructuring and rescue of an insolvent company.