INSOLVENCY PART 1 Introductory Citation and commencement 1 These Regulations may be cited as the Insolvency Practitioners Regulations (Northern Ireland) 2006 and shall come into operation on 27 March 2006. Interpretation: general 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— membership of a body recognised pursuant to Article 350 of the Order ; or 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. Interpretation – meaning of initial and subsequent capacity 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. Revocations and transitional and saving provisions 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 Authorisation of Insolvency Practitioners by Competent Authorities and Related Matters Interpretation of Part 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Matters for determining whether an applicant for an authorisation is a fit and proper person 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Requirements as to education and training – applicants who have never previously been authorised to act as insolvency practitioners 7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Requirements relating to education and training etc. —applicants previously authorised to act as insolvency practitioners 8 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Requirements relating to education and training etc —further authorisation to act as insolvency practitioners 8A . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Records of continuing professional development activities 9 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Maximum period of authorisation 10 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Returns by insolvency practitioners authorised by the Department 11 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . PART 3 The Requirements for Security for the Proper Performance of the Functions of an Insolvency Practitioner etc. 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 Records to be maintained by Insolvency Practitioners – Inspection of Records Records to be maintained by insolvency practitioners 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. Notification of whereabouts of records 14 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Inspection of records 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. Inspection of practice records 16 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Inspection of records in administration and administrative receiverships 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