A Guide To The IPA Ethics Code
A GUIDE TO THE INSOLVENCY PRACTITIONERS ASSOCIATION ETHICS CODE
The Joint Insolvency Committee (JIC) is undertaking an on-going review of the Code of Ethics for Insolvency Practitioners. To date, that work has comprised of a number of work strands, including the revision of Statement of Insolvency Practice 1 (SIP 1), which came into effect on 1 October 2015.
The review process identified that increased awareness amongst stakeholders of the existing Code of Ethics to which practitioners work would aid stakeholders’ understanding of an insolvency practitioner’s work, and potentially promote transparency and trust within the profession.
SIP 1 was revised accordingly to include a provision that an insolvency practitioner should inform creditors at the earliest opportunity that they are bound by the Insolvency Code of Ethics when carrying out all professional work relating to an insolvency appointment.
Additionally, an insolvency practitioner should, if requested, provide details of any threats identified to compliance with the fundamental principles and the safeguards applied. If it is not appropriate to provide such details, the insolvency practitioner should provide an explanation why.
To assist members in fulfilling these new requirements, the IPA has produced a Guide to the Ethics Code, which its members are at liberty to use. It is intended as a useful summary which may be provided by members to interested parties, such as creditors and other stakeholders, or more junior staff. It may, for instance, be provided alongside any case-specific response to a SIP 1 enquiry, provided as part of a staff training or induction programme, or as part of an internal complaints handling procedure.
For the avoidance of doubt, there is no regulatory expectation that this Guide be supplied to any particular group of third parties; it is merely intended to assist members in explaining the complex framework within which they are expected to work in instances when they consider it would be useful to do so. Similarly, this Guide is not intended for use by members themselves, who should continue to refer to the full text of the Code.
The Guide is available as downloadble PDF at the top of this page and members may reproduce the guide upon their own websites without further permission from the IPA.
The broader review of the Code is ongoing and is likely to take some time to complete. Any change to the existing Code will be subject to a full consultation with members, as and when an appropriate stage in the review process has been reached.