
PART 1
1 
These Regulations may be cited as the Insolvency Practitioners Regulations (Northern Ireland) 2006 and shall come into operation on 27 March 2006.
2 

(1) In these Regulations—
 “commencement date” means the date on which these Regulations come into operation;
 “the Department” means the Department of Enterprise, Trade and Investment;
 “initial capacity” shall be construed in accordance with regulation 3;
 “insolvency practitioner” means a person who is authorised to act as an insolvency practitioner by virtue of—
(a) membership of a body recognised pursuant to Article 350 of the Order; or
(b) an authorisation granted pursuant to Article 352 of the Order;
 “insolvent” means a person in respect of whom an insolvency practitioner is acting;
 “the Order” means the Insolvency (Northern Ireland) Order 1989;
 “subsequent capacity” shall be construed in accordance with regulation 3.
(2) In these Regulations a reference to the date of release or discharge of an insolvency practitioner includes—
(za) where the insolvency practitioner acts as the monitor in relation to a moratorium under Part 1A of the Order, whichever is the earlier of the date on which—
(i) the moratorium comes to an end, or
(ii) the insolvency practitioner otherwise ceases to act as the monitor in relation to the moratorium;
(a) where the insolvency practitioner acts as nominee in relation to proposals for a voluntary arrangement under Part II or Chapter II of Part VIII of the Order, whichever is the earlier of the dates on which—
(i) the proposals are rejected by creditors;
(ii) he is replaced as nominee by another insolvency practitioner; or
(iii) the arrangement takes effect without his becoming supervisor in relation to it; and
(b) where an insolvency practitioner acts as supervisor of a voluntary arrangement, whichever is the earlier of the dates on which—
(i) the arrangement is completed or terminated; or
(ii) the insolvency practitioner otherwise ceases to act as supervisor in relation to the arrangement.
3 

(1) In these Regulations an insolvency practitioner holds office in relation to an insolvent in a “subsequent capacity” where he holds office in relation to that insolvent in one of the capacities referred to in paragraph (3) and immediately prior to his holding office in that capacity, he held office in relation to that insolvent in another of the capacities referred to in that paragraph.
(2) The first office held by the insolvency practitioner in the circumstances referred to in paragraph (1) is referred to in these Regulations as the “initial capacity”.
(3) The capacities referred to in paragraph (1) are:
(a) nominee in relation to proposals for a voluntary arrangement under Part II of the Order;
(b) supervisor of a voluntary arrangement under Part II of the Order;
(c) administrator;
(d) provisional liquidator;
(e) liquidator;
(f) nominee in relation to proposals for a voluntary arrangement under Chapter II of Part VIII of the Order;
(g) supervisor of a voluntary arrangement under Chapter II of Part VIII of the Order; and
(h) trustee.
4 

(1) Subject to paragraphs (2), (3) and (4), the Regulations listed in Schedule 1 shall be revoked.
(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(3) Parts I, III and IV of the Insolvency Practitioners Regulations (Northern Ireland) 1991 shall continue to apply in relation to any case in respect of which an insolvency practitioner is appointed—
(a) before the commencement date; or
(b) in a subsequent capacity and he was appointed in an initial capacity in that case before the commencement date.
(4) Only  regulation 17  shall apply in relation to the cases mentioned in paragraph (3).
PART 2
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8 
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8A. 
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11 
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PART 3
12 

(1) Schedule 2 shall have effect in respect of the requirements prescribed for the purposes of Article 349(3)(b) of the Order in relation to security for the proper performance of the functions of an insolvency practitioner and for related matters.
(2) Where two or more persons are appointed jointly to act as insolvency practitioners in relation to any person, the provisions of this regulation shall apply to each of them individually.
(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
PART 4
13 

(1) In respect of each case in which an insolvency practitioner acts, the insolvency practitioner shall maintain records containing information sufficient to show and explain—
(a) the administration of that case by the insolvency practitioner and the insolvency practitioner’s staff; and
(b) any decisions made by the insolvency practitioner which materially affect that case.
(2) Where at any time the records referred to in  Schedule (3) as is applicable to the case.  do not contain all the information referred to in Schedule 3 as is applicable to the case, the insolvency practitioner shall forthwith make such changes to the records as are necessary to ensure that the records contain all such information.
(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(4) Any records created in relation to a case pursuant to this regulation shall be preserved by the insolvency practitioner until whichever is the later of—
(a) the sixth anniversary of the date of the grant to the insolvency practitioner of his release or discharge in that case; or
(b) the sixth anniversary of the date on which any security maintained in that case expires or otherwise ceases to have effect.
14 
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15 

(1) Any records maintained by an insolvency practitioner pursuant to this Part shall on the giving of reasonable notice be made available by him for inspection by—
(a) any professional body recognised under Article 350 of the Order of which he is a member and the rules of membership of which entitle him to act as an insolvency practitioner;
(b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(c) the Department.
(2) Any person who is entitled to inspect any record pursuant to paragraph (1) shall also be entitled to take a copy of those records.
16 
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17 
On the giving of reasonable notice to the insolvency practitioner, the Department shall be entitled to inspect and take copies of any records in the possession or control of that insolvency practitioner which—
(a) were required to be created by or under any provision of the Order (or any provision made under the Order); and
(b) relate to an administration or an administrative receivership.
Sealed with the Official Seal of the Department of Enterprise, Trade and Investment on 9 February 2006
Michael J Bohill
A senior officer of the
Department of Enterprise, Trade and Investment

SCHEDULE 1
Regulation 4


 The Insolvency Practitioners Regulations (Northern Ireland) 1991
 The Insolvency Practitioners (Amendment) Regulations (Northern Ireland) 1993
 The Insolvency Practitioners (Amendment No. 2) Regulations (Northern Ireland) 1993
 The Insolvency Practitioners (Amendment) Regulations (Northern Ireland) 2003

SCHEDULE 2
Regulation 12
PART 1
1 
In this Schedule—
 “cover schedule” means the schedule referred to in paragraph 3(2)(c);
 “the insolvent” means the individual or company in relation to which an insolvency practitioner is acting;
 “general penalty sum” shall be construed in accordance with paragraph 3(2)(b);
 “insolvent’s assets” means all assets comprised in the insolvent’s estate together with any monies provided by a third party for the payment of the insolvent’s debts or the costs and expenses of administering the insolvent’s estate;
 “professional liability insurance” means insurance taken out by the insolvency practitioner in respect of potential liabilities to the insolvent and third parties arising out of acting as an insolvency practitioner.
 “specific penalty sum” shall be construed in accordance with paragraph 3(2)(a).
PART 2
2 
The requirements in respect of security for the proper performance of the duties of insolvency practitioners prescribed for the purposes of Article 349(3)(b) of the Order shall be as set out in this Part.
2A. 
Where an insolvency practitioner is appointed to act in respect of an insolvent there shall be in force—
(a) a bond in a form approved by the Department which complies with paragraph 3; ...
(b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3 

(1) The bond shall—
(a) be in writing or in electronic form;
(b) contain provision whereby a surety undertakes to be jointly and severally liable for losses in relation to the insolvent caused by—
(i) the fraud or dishonesty of the insolvency practitioner whether acting alone or in collusion with one or more persons; or
(ii) the fraud or dishonesty of any person committed with the connivance of the insolvency practitioner; and
(c) otherwise conform to the requirements of this paragraph and paragraphs 4 to 8.
(2) The term of the bond shall provide—
(a) for the payment, in respect of each case where the insolvency practitioner acts, of claims in respect of liabilities for losses of the kind mentioned in sub-paragraph (1) up to an aggregate maximum sum in respect of that case (“the specific penalty sum”) calculated in accordance with the provisions of this Schedule;
(b) in the event that any amounts payable under (a) are insufficient to meet all claims arising out of any case, for a further sum of £250,000 (“the general penalty sum”) out of which any such claims are to be met;
(c) for a schedule containing the name of the insolvent and the value of the insolvent’s assets to be submitted to the surety within such period as may be specified in the bond;
(d) that where at any time before the insolvency practitioner obtains his release or discharge in respect of his acting in relation to an insolvent, he forms the opinion that the value of that insolvent’s assets is greater than the current specific penalty sum, a revised specific penalty sum shall be applicable on the submission within such time as may be specified in the bond of a cover schedule containing a revised value of the insolvent’s assets;
(e) for the payment of losses of the kind mentioned in sub-paragraph (1), whether they arise during the period in which the insolvency practitioner holds office in the capacity in which he was initially appointed or a subsequent period where he holds office in a subsequent capacity.
(3) The terms of the bond may provide—
(a) that total claims in respect of the acts of the insolvency practitioner under all bonds relating to him are to be limited to a maximum aggregate sum (which shall not be less than £25,000,000); and
(b) for a time limit within which claims must be made.
4 
Subject to paragraphs 5, 6 and 7, the amount of the specific penalty in respect of a case in which the insolvency practitioner acts, shall equal at least the value of the insolvent’s assets as estimated by the insolvency practitioner as at the date of his appointment but ignoring the value of any assets—
(a) charged to a third party to the extent of any amount which would be payable to that third party; or
(b) held on trust by the insolvent to the extent that any beneficial interest in those assets does not belong to the insolvent.
5 
In a case where an insolvency practitioner acts as a nominee or supervisor of a voluntary arrangement under Part II or Chapter II of Part VIII of the Order, the amount of the specific penalty shall be equal to at least the value of those assets subject to the terms of the arrangement (whether or not those assets are in his possession) including, where under the terms of the arrangement the debtor or a third party is to make payments, the aggregate of any payments to be made.
6 
Where the value of the insolvent’s assets is less than £5,000, the specific penalty sum shall be £5,000.
7 
Where the value of the insolvent’s assets is more than £5,000,000 the specific penalty sum shall be £5,000,000.
8 
In estimating the value of an insolvent’s assets, unless he has reason to doubt their accuracy, the insolvency practitioner may rely upon any statement of affairs produced in relation to that insolvent pursuant to any provision of the Order.
8A. 
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8B. 
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PART 3
9 

(1) An insolvency practitioner shall maintain a record of all specific penalty sums that are applicable in relation to any case where he is acting and such record shall contain the name of each person to whom the specific penalty sum relates and the amount of each penalty sum that is in force.
(2) Any record maintained by an insolvency practitioner pursuant to this paragraph shall, on the giving of reasonable notice, be made available for inspection by—
(a) any professional body recognised under Article 350 of the Order of which he is or was a member and the rules of membership of which entitle or entitled him to act as an insolvency practitioner;
(b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(c) the Department.
(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
10 

(1) The bond referred to in paragraph 3  or a copy shall  be sent by the insolvency practitioner to—
(a) any professional body recognised under Article 350 of the Order of which he is a member and the rules of membership of which entitle him to act as an insolvency practitioner; or
(b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(3) The bond referred to in paragraph 3  or a copy of it may be sent electronically.
11 

(1) This regulation applies to an insolvency practitioner appointed in insolvency proceedings under the Order to act—
(a) in relation to a company which the High Court has jurisdiction to wind up; or
(b) in respect of an individual.
(2) The insolvency practitioner shall retain a copy of the cover schedule submitted by him in respect of his acting in relation to the company or, as the case may be, individual until the second anniversary of the date on which he is granted his release or discharge in relation to that company or, as the case may be, that individual.
(3) The copy of a schedule kept by an insolvency practitioner in pursuance of sub-paragraph (2) shall be produced by him on demand for inspection by—
(a) any creditor of the person to whom the schedule relates;
(b) where the schedule relates to an insolvent who is an individual, that individual;
(c) where the schedule relates to an insolvent which is a company, any contributory or director or other officer of the company; and
(d) the Department.
(4) In its application in relation to a building society within the meaning of the Building Societies Act 1986, paragraph 3(d) shall have effect as if for the reference to the Department there was substituted a reference to the  Financial Conduct Authority or the Prudential Regulation Authority .
(5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(6) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
12 

(1) Every insolvency practitioner shall submit to his authorising body not later than 20 days after the end of each month during which he holds office in a case—
(a) the information submitted to a surety in any cover schedule related to that month;
(b) where no cover schedule is submitted in relation to the month, a statement either that there are no relevant particulars to be supplied or, as the case may be, that it is not practicable to supply particulars in relation to any appointments taken in that month; and
(c) a statement identifying any case in respect of which he has been granted his release or discharge.
(2) In this regulation “authorising body” means in relation to an insolvency practitioner—
(a) any professional body recognised under Article 350 of the Order of which he is a member and the rules of membership of which entitle him to act as an insolvency practitioner; or
(b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
SCHEDULE 3
Regulation 13
1 
The name of the insolvency practitioner acting in the case.
2 
The identifying number or reference issued to the insolvency practitioner by 
(a ) a competent authority;
(b) a competent authority in Great Britain as defined in section 392 of the Insolvency Act 1986; or
(c) any body recognised under Article 350 of the Order.
3 
The principal business address of the insolvency practitioner.
4 
Either—
(a) the name of—
(i) any body by virtue of whose rules the insolvency practitioner is entitled to practise; or
(ii) any competent authority by whom the insolvency practitioner is authorised; or
(b) where the insolvency practitioner is authorised by a competent authority in Great Britain under section 393 of the Insolvency Act 1986, that such an authorisation has been granted.
5 
The name of the person in respect of whom the insolvency practitioner is acting.
6 
The type of the insolvency proceedings.
7 
As regards the progress of the administration of the case the following details if applicable—
(a) the date of commencement of the proceedings;
(b) the date of appointment of the insolvency practitioner;
(c) the date on which the appointment was notified to the Registrar of Companies;
(d) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
8 
As regards the arrangements for security in the case—
(a) the date of submission of the cover schedule which has the details of the specific penalty sum applicable in the case;
(b) the amount of the specific penalty sum;
(c) the name of the surety;
(d) the date of submission to surety of a cover schedule with any increase in the amount of the specific penalty sum;
(e) the amount of any revised specific penalty sum; and
(f) the date of submission to the surety of details of termination of the office held by the insolvency practitioner.
9 
As regards the remuneration of the insolvency practitioner—
(a) the basis on which the remuneration of the insolvency practitioner is to be calculated; and
(b) the date and content of any resolution of creditors in relation to the remuneration of the insolvency practitioner.
10 
The dates of—
(a) the meeting of members;
(b) the date of first meeting of creditors—
(i) to consider an administrator’s proposals;
(ii) to consider an administrative receiver’s report;
(iii) in liquidation or bankruptcy; or
(iv) to consider a voluntary arrangement proposal; and
(c) the dates and purposes of any subsequent meetings.
11 
As regards the insolvency practitioner’s duties under Article 10 of the Company Directors Disqualification (Northern Ireland) Order 2002 to report the conduct of directors—
(a) the date a return under Article 10 is due;
(b) the date a return is submitted to the Department;
(c) the date a conduct report is submitted to the Department; and
(d) the date on which any further reports are submitted to the Department.
12 
The following details regarding the completion of the case—
(a) the date of the final notice to, or meeting of, creditors;
(b) the date that the insolvency practitioner vacates office; and
(c) the date of release or discharge of the insolvency practitioner (or if there is no final meeting of creditors, the date of the final return of receipts and payments to the Department).
13 
As regards distributions—
(a) in relation to each payment to preferential or preferred creditors—
(i) the name of the person to whom the payment was made;
(ii) the date of the payment;
(iii) the amount of the payment;
(b) in relation to each payment to unsecured creditors—
(i) the name of the person to whom the payment was made;
(ii) the date of the payment;
(iii) the amount of the payment; and
(c) in relation to each return of capital—
(i) the name of the person to whom the return of capital was made;
(ii) the date of the payment; and
(iii) the amount of capital returned or the value of any assets returned.
14 
As regards any returns or accounts to be made to the Department or the Registrar of Companies—
(a) as regards each interim return or abstract of receipts and payments—
(i) the date the return or abstract is due;
(ii) the date on which the return is filed; and
(b) as regards any final return or abstract of receipts and payments—
(i) the date that the return or abstract is due; and
(ii) the date on which the return is filed.
15 
Records of the amount of time spent on the case by the insolvency practitioner and any persons assigned to assist in the administration of the case.