INSOLVENCY SERVICE
News Release (Ins/Coms/34) issued by COI News Distribution Service.
25 November 2008
All the bodies
that authorise and regulate insolvency practitioners have agreed a
new ethical code for their practitioners which will come into
force in January 2009.
The 'Insolvency Ethical Code' (the Code) published by
The Insolvency Service, has been designed to assist insolvency
practitioners and their staff to undertake their work to high
professional and ethical standards.
Based on the five fundamental principles of: integrity,
objectivity, professional competence and due care, confidentiality
and professional behaviour the Code provides a framework which
applies to all aspects of an insolvency practitioner's
professional work relating to, or that may lead to, an insolvency
appointment. The Code also provides specific guidance regarding
pre-packaged administrations; the means of obtaining work; the use
of specialist agents; and referral fees. Most insolvency
practitioners are qualified accountants and the Code is aligned to
a model Ethical Code adopted by the International Federation of Accountants.
Mike Chapman, Head of insolvency practitioner regulation at the
Insolvency Service said: "Integrity and objectivity have
always been fundamental principles which insolvency practitioners
should apply in all aspects of their work. The new Code will
provide practitioners with clear consistent guidance on what they
can and cannot do in their professional life and assist them to
work to high professional and ethical standards".
IPs will be expected to take reasonable steps to identify any
threats to compliance and with the fundamental principles.
Breaches of the Code of Ethics may be taken into account by an
IP's authorising body when assessing the IP's conduct.
Notes to Editors:
1. The Insolvency Service administers the insolvency regime
investigating all compulsory liquidations and individual
insolvencies (bankruptcies) through the Official Receiver to
establish why they became insolvent. The Service also authorises
and regulates the insolvency profession, deals with
disqualification of directors in corporate failures, assesses and
pays statutory entitlement to redundancy payments when an employer
cannot or will not pay employees, provides banking and investment
services for bankruptcy and liquidation estate funds and advises
ministers and other government departments on insolvency law and practice.
2. The Insolvency Code of Ethics has been approved by the Joint
Insolvency Committee and adopted by all of the bodies that
authorise and regulate insolvency practitioners. It provides a
unified code of ethics for all Insolvency Practitioners (IPs) to
which IPs, insolvents, creditors and others may refer.
3. Seven Professional Bodies have been recognised by the
Secretary of State to authorise their members to be insolvency
practitioners. They are:-
Institute of Chartered Accountants
in England & Wales
Institute of Chartered Accountants of
Scotland
Institute of Chartered Accountants in
Ireland
Association of Chartered Certified Accountants
Law
Society of England & Wales
Law Society of Scotland
The
Insolvency Practitioners Association
Further information about the work of The Insolvency Service is
available from http://www.insolvency.gov.uk