Reminder: New Control of Cases Insolvency Guidance Paper
IPA Insolvency Practitioner newsletter, December 2024
A revised Insolvency Guidance Paper (IGP) approved by The Joint Insolvency Committee (JIC) and each of the Recognised Professional Bodies (RPBs) relating to the control of cases is now in effect as of 2 December 2024.
Summary of changes
The Control of Cases IGP, in place since 2005, had remained unchanged despite significant shifts in the insolvency market and profession. The principal revisions to the IGP recognise the move to a more risk-based approach to case management and monitoring, the increased use of outsourcing and remote case processing and the growth of volume or large-scale case administration.
The updated IGP includes new sections on risk management and ‘volume’ practice, and expands on the types of delegation considered. The style and language used have also been modernised to make it clearer and easier to apply.
Withdrawal of IGP: Systems for Control of Accounting and Other Business Records
The IGP on systems for control of accounting and other business records was withdrawn on 2 December. The guidance provided in the IGP is no longer useful, as its focus is primarily on hard copy records and only sets out steps that any competent insolvency practitioner should already be taking.
Insolvency practitioners are reminded that Statement of Insolvency Practice (SIP) 2 – Investigations by Office Holders in Administrations and Insolvent Liquidations and the Submission of Conduct Reports by Office Holders – imposes an obligation on office holders to locate, secure and list the company’s books and records, regardless of their format. The withdrawal of the IGP does not remove the obligations set out in SIP 2.