Welcome to R3's Technical Alerts, exclusively for members.
In R3’s Technical Alert on 17 May 2021, members were informed that the Act had received Royal Assent on 29 April 2021, albeit the operative provisions of the Act will only come into effect once the necessary implementing regulations have been adopted, expected this year. However, the Act will have retrospective effect with respect to any transactions completing from 12 November 2020. We can now confirm that the operative provisions of the Act will take effect on 4 January 2022. View
On 20 July 2021 the FCA announced that five firms had stopped providing debt advice until further notice following a review by them into the practices of debt packager firms. Furthermore, the FCA also published correspondence between the FCA and Dean Beale, CEO of the Insolvency Service setting out how the two organisations are approaching certain practices of debt packager firms in order protect consumers who need debt advice. View
Whilst there is an express carve-out for administrators and creditors in an administration (or similar proceedings under the insolvency laws of another country) contained within the Act, Insolvency Practitioners should still bear in mind the obligations placed upon a third party purchaser with regard to transactions involving 17 high-risk /sensitive sectors subject to mandatory pre-completion notification/clearance and the impact that the requirements under the Act could have on distressed M&A transactions. Further the administrator carve out does not encompass liquidators. View
On 12 May 2021 the FCA published its finalised guidance for insolvency practitioners (IPs) on how to approach insolvencies of regulated firms (FG21/4). The guidance aims to achieve better outcomes on firm failures by helping IPs to understand how to deal with regulated firms in line with the FCA’s expectations. View
The introduction of the revised SIP 9 has resulted in the Recognised Professional Bodies (RPBs) being asked a number of questions surrounding its practical operation. ICAEW, IPA, ICAS and CAI have attempted to address these questions and provide their collective thoughts on the applied impact of the changes to SIP 9 in these FAQs. View
The Administration (Restrictions on Disposal etc. to Connected Persons) Regulations 2021 which are due to come into effect on 30 April 2021 will impose additional obligations on connected person purchasers in administrations. View
On 24 March 2021 the Regulations were laid before the UK Parliament and will come into force on 26 March 2021. The Regulations amend a number of provisions within the Corporate Insolvency and Governance Act 2020. View
On 24 February 2021, the draft statutory instrument of the regulations was published following a period of consultation. An administrator will be unable to make a “substantial disposal” of company property (including hiring out or sale) to a person connected with the company within the first 8 weeks of the administration WITHOUT either the approval of creditors or an independent written opinion i.e. a qualifying report (positive or negative). This could involve one or more transactions. View
Further to the technical alert issued on 18 February 2021, Companies House has provided clarification to the rejection of Form LIQ03 , Give notice of progress report in voluntary winding up. View
HMRC have set up a dedicated team to identify and recover funds where the CJRS and other support payments such as the Self-employed Income Support Scheme and the Eat out to Help Out scheme, were made when they weren’t properly due. View
This alert highlights two possible concerns with Companies House filings and the introduction of a new RP14A Form, which is to be used from 19 February 2021. View
An update on HMRC helplines. View
This alert provides members with updated addresses for HMRC, a reminder on electronic banking for IPs making dividend payments and a brief update on the issues being experienced with VAT and tax clearances. View
On 8 October 2020, the Government published its report on the findings and recommendations following a review to assess the impact of voluntary industry measures introduced in November 2015 to improve the transparency of pre-pack sales in administration. View
The Regulations will come into force on 1 October 2020 and as a result a number of temporary provisions in the Corporate Insolvency and Governance Act 2020 will terminate. View
This alert provides an update on the issues members are experiencing with the Companies House ‘Upload a document to Companies House’ service. The alert also notifies members on the changes to the Insolvency Service telephone numbers and provides details of a call for evidence by BEIS about the recognition of Professional Qualifications post Brexit. View
As members may be aware the Redundancy Payments Service (‘RPS’) have been making bulk payments to the various pension providers via BACS rather than cheque. However, it recently came to the attention of the R3 Technical Team that NEST had returned a bulk payment of a number of pension claims to the RPS and as a result the RPS determined that they would not be making payments to NEST for the foreseeable future and not until their office was manned again so individual cheques for each claim could be issued. This technical alert provides an update from NEST on this reported matter. View
Important changes to Bankruptcy (Scotland) Act 2016 View
This technical alert concerns the guidance released by HMRC titled ‘ Introduction of electronic banking for Insolvency Practitioners making dividend payments’ and historic claims from HMRC. View
The Joint Insolvency Committee (JIC) is consulting on changes to SIP 9 - Payments to insolvency office holders and their associates and SIP 7 - Presentation of financial information in insolvency proceedings. The consultation will commence on 27 April 2020 and will be open for a period of 12 weeks, closing on 20 July 2020. View
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