Code of ethics for insolvency practitioners

This Code is intended to assist Insolvency Practitioners meet the obligations expected of them by providing professional and ethical guidance.

Code of ethics

This Code applies to all Insolvency Practitioners. Insolvency Practitioners should take steps to ensure that the Code is applied in all professional work relating to:

  • an insolvency appointment
  • any professional work that may lead to such an insolvency appointment

Although, an insolvency appointment will be of the Insolvency Practitioner personally rather than their practice they should ensure that the standards set out in this Code are applied to all members of the insolvency team.

Revision of Insolvency Code of Ethics 

The Joint Insolvency Committee (JIC) is consulting on a revised version of the Code of Ethics applicable to insolvency practitioners.

The draft Code of Ethics (the draft Code) has been developed by a JIC working group comprising a variety of insolvency stakeholders including HM Revenue and Customs, Max Recovery and representatives from the Recognised Professional Bodies (the RPBs).

An explanatory note has been produced to accompany the consultation which sets out in more detail the background to the need to revise the Code and the approach adopted in developing the draft Code.

The JIC working group have also recognised that activities leading to insolvency appointments, particularly in the personal/consumer debt insolvency arena, bear little recognition to the landscape when the Code was introduced. Services offered by firms or groups in which IPs operate are far greater than the accountancy or legal practice in which IPs have traditionally been associated with.

The sections within the Code pertaining to obtaining specialist advice and services, fees and other types of remuneration and obtaining insolvency appointments are of key concern given developments since the Code was last reviewed. It is felt that this area is of such fundamental importance that specific consultation on stakeholder views should be undertaken prior to deciding on whether the Code should be revised in these areas. Further context to consultation in this area is also provided in the explanatory note.

It is intended that the revised Code of Ethics will apply UK wide.

The consultation closed on 25 July 2017.

The draft revised Code of Ethics and explanatory note are available at:

 

 

 

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