Insolvency Practitioners Regulation Act 2019

Schedule 1 Transitional, savings, and related provisions

s 6

Part 1 Provisions relating to this Act as enacted

1 Interpretation

In this Part,—

4-month date means the day that immediately follows the expiry of the 4-month period that starts on the commencement date

accredited insolvency practitioner means a person who, on the commencement date,—

(a)

is accredited by an accredited body to undertake insolvency engagements; and

(b)

is either—

(i)

a member of the accredited body; or

(ii)

a person to whom section 57 applies

commencement date means the date on which section 8 comes into force

first anniversary means the day that immediately follows the expiry of the 12-month period that starts on the commencement date

transitional licence means a licence that an accredited insolvency practitioner is treated as holding under clause 2(1)

transitional requirements means requirements prescribed under section 22(1)(f) for the purpose of this schedule.

2 Accredited insolvency practitioner to be treated as licensed insolvency practitioner on commencement

(1)

A person who is an accredited insolvency practitioner and who satisfies the transitional requirements (if any) must be treated, on and from the commencement date, as a licensed insolvency practitioner who holds a licence under subpart 1 of Part 2 that—

(a)

authorises the person to undertake the types of insolvency engagements for which the person is accredited; and

(b)

is recorded in the register.

(2)

The provisions of this Act (except for sections 9, 11, and 13) apply in relation to a transitional licence.

3 When transitional licence expires

Clause 2(1) ceases to apply to an accredited insolvency practitioner, and the practitioner is no longer to be treated as holding a licence under subpart 1 of Part 2,—

(a)

if the Registrar (acting under section 45) suspends or cancels the accreditation of the accredited body that accredited the practitioner, from the date on which the Registrar suspends or cancels the accreditation:

(b)

in relation to a practitioner to whom section 57 applies, from the date on which section 57 ceases to apply in respect of the practitioner:

(c)

if the transitional licence is cancelled under subpart 1 of Part 2, from the date on which the licence is cancelled:

(d)

if the practitioner fails to apply for a licence before the end of the 4-month date, from the end of that day:

(e)

if the practitioner does apply for a licence before the end of the 4-month date and—

(i)

the accredited body decides not to issue the licence, from the end of the day that is 20 working days after notice of the decision is communicated to the practitioner:

(ii)

the licence is issued, from the issue date of the licence:

(iii)

the accredited body has not made a decision on the application before the end of the first anniversary, from the end of the first anniversary.

4 Transitional provisions relating to register

(1)

This clause applies in relation to an accredited insolvency practitioner who holds a transitional licence.

(2)

Not later than 3 working days after the commencement date, each accredited body must notify the Registrar of the following information:

(a)

the full name and address of the practitioner:

(b)

the date on which the insolvency practitioner received accreditation:

(c)

the types of insolvency engagements for which the practitioner is accredited to act.

(3)

The Registrar must ensure that the register maintained under subpart 3 of Part 2 contains the information that is described in subclause (2) for each accredited insolvency practitioner who holds a transitional licence.

(4)

This clause applies in place of sections 30(1) and 31.

5 Application to insolvency engagements already underway

(1)

This Act does not apply to—

(a)

the liquidation of a company under Part 16 of the Companies Act 1993 for which a liquidator was appointed before the commencement date; or

(b)

the administration of a company under Part 15A of the Companies Act 1993 for which an administrator was appointed before the commencement date; or

(c)

a company under a deed of company arrangement under Part 15A of the Companies Act 1993 for which the deed of company arrangement was executed before the commencement date; or

(d)

a receivership under the Receiverships Act 1993 for which a receiver was appointed before the commencement date; or

(e)

a proposal under subpart 2 of Part 5 of the Insolvency Act 2006 for which a trustee or provisional trustee was appointed before the commencement date.

(2)

Despite subclause (1)(a), a person who is the liquidator of a company and who, on the first anniversary, is not a licensed insolvency practitioner must resign on the first anniversary, and section 283 of the Companies Act 1993 (as amended by Part 1 of the Insolvency Practitioners Regulation (Amendments) Act 2019) applies accordingly.

(3)

However, subclause (2) does not apply if—

(a)

the board of the company passed a resolution described in section 243(8) of the Companies Act 1993 within 20 working days of the appointment of a liquidator under section 241(2)(a) or (b) of that Act; and

(b)

the liquidator has not called (and is not required to call) a meeting of creditors of the company under section 244 of the Companies Act 1993.

(4)

If subclause (2) applies to the liquidation of a company, sections 280 and 283A of the Companies Act 1993 (as amended and inserted by Part 1 of the Insolvency Practitioners Regulation (Amendments) Act 2019) and this Act applies to the liquidation on and from the first anniversary.

6 First plan published under section 38

(1)

For the purpose of the first plan published under section 38, this clause applies in place of section 38(1) and (2).

(2)

The Registrar must publish the first plan—

(a)

as soon as is reasonably practicable after section 38 comes into force; but

(b)

not later than 6 months after section 38 comes into force.

(3)

The first plan must relate to the following:

(a)

the remaining part of the financial year in which it is published:

(b)

3 or more further financial years.

7 Description of compliance with notices or directions in first report published under section 41

(1)

For the purpose of the first report published under section 41, this clause applies in place of section 41(3).

(2)

If, in the period since the commencement of section 41, the Registrar has issued a notice or direction to an accredited body under this Act, the first report must describe the extent to which the accredited body has complied with the notice or direction.