Paul Smith, CEO

Dear Members,

I hope you are enjoying the summer and have taken, or will be taking, some time away from the office. Whilst this period can be quiet in some quarters, there have been some important developments within the insolvency sector to highlight.

Those operating in the personal insolvency space will have taken note of the FCA’s announcement earlier this summer on a ban on debt packagers receiving remuneration from debt solution providers. This is a very important issue for the personal insolvency community and in recognition of this, we have produced guidance for Insolvency Practitioners on best practice following the FCA ban. All of our licence holders have received a copy of the guidance, which can be viewed here.

The corporate space is also seeing change. Please be aware that HM Treasury has published a response to its consultation on reforming the Consumer Credit Act 1974. This is significant legislation that includes ensuring consumers can make credit card purchases confidently and are able to resolve disputes effectively. In its response, HM Treasury refers to a potential loss of Section 75 and replacement with FCA rules. Achieving a fair balance between consumer rights and the interests of businesses and financial institutions is key to maintaining a fair and prosperous marketplace. It is thought the new FCA rules could give rise to challenges for consumers claiming in insolvency. Read more about this in this month’s newsletter.

I look forward to meeting more of you at our Scotland Roadshow on 24th August, which promises to deliver important updates and discussion on the latest developments in Scottish insolvency, with speakers from the Bank of England, Accountant in Bankruptcy, Citizens Advice Scotland, the University of Glasgow, HMRC, BBM Solicitors, Insolvency Support Services and the IPA Regulation team. If you operate in Scotland or practice Scottish insolvency law, I hope we will see you there.

With Autumn on the horizon, and whether for CPD or otherwise, please do take a moment to look at our events calendar for the final quarter of 2023. Amongst these, you will see that the full programme and venue for our upcoming event in Birmingham dedicated to AML and fraud has been announced. This is a fast-moving area and hence a particularly challenging one for insolvency professionals to ensure they are abreast of changes and remain compliant. The event is proving popular and we do have a limit on capacity hence if you do intend joining us as we cover the latest developments and understand how best to stay protected it would be advisable to book early.

Best wishes and enjoy the remainder of the summer,

Paul Smith