IPA Insolvency Practitioner newsletter, December 2023
As advised in our email to members on 11 December 2023, we have made further improvements to the Professional Indemnity Insurance Regulations (“PIIR”) which will apply to PII policies commenced or renewed after 1 January 2024.
The current (2017) PIIR require insolvency practitioners to have “fidelity insurance covering the dishonest acts or omissions of principals and employees of the Individual Member”. Under the new PIIR this requirement has been rephrased so that an insolvency practitioner’s PII policy commenced or renewed after 1st January 2024 will be required to include “cover for third party loss caused by the fraud or dishonesty of employees or other persons at the Individual Member’s Firm who act for or on behalf of the Individual Member” (Regulation 3.4). The former labels “fidelity insurance” and “Fidelity Guarantee Insurance” have been removed.
The current PII Guidance requires insolvency practitioners to notify the IPA if they are unable to obtain the required minimum PII cover. From 1st January 2024 that requirement will also appear in the PIIR (Regulation 9.1).
The further changes to the PIIR are outlined in full here.
The revised PIIR and the revised PII Guidance (which reflect the above changes) have been approved by the Board and are available here:
IPA Professional Indemnity Insurance Regulations 2024
IPA Professional Indemnity Insurance Guidance 2024
Members will be aware from previous communication that new IPA Client Money Regulations and Continuing Professional Development Guidance are also coming into force on 1 January 2024. All the new regulations can be accessed here, and the webinar on the changes, held on 12 December 2023, can be viewed here.