Explanatory note
(This note does not form part of the Regulations)
These Regulations make provision for–
the granting or refusal of applications made on or after 1st April 1990 to the competent authority (“the Secretary of State”) under the Insolvency Act 1986 (“the Act”) for authorisation to act as an insolvency practitioner; and
the withdrawal on or after that date of authorisations granted by the Secretary of State under the Act (regulations 3 to 10 and Schedule 1);
the requirements to be prescribed under section 390(3) of the Act in respect of security or caution for the proper performance of the functions of an insolvency practitioner (regulations 11 to 15 and Schedule 2); and
the records to be kept by an insolvency practitioner in respect of the estate of each person in relation to whom the practitioner acts (regulations 16 to 20 and Schedule 3).
They consolidate the Insolvency Practitioners Regulations 1986 and the three instruments which amended those Regulations (namely, S.I. 1986/2247, 1989/1587 and 2170). In addition to minor and drafting amendments, they make one change of substance: with effect from 1st April 1990, persons applying to the Secretary of State for authorisation to act as an insolvency practitioner will not be eligible for such authorisation unless they have passed the examination set by the Joint Insolvency Examination Board or have a similar overseas qualification. Only persons who hold a current authorisation when they apply and have recent insolvency experience as specified in the Regulations are excepted from this requirement (regulations 5 and 7).
The Regulations also provide for the revocation of the Insolvency Practitioners Regulations 1986 and the three amending instruments noted above and make appropriate transitional provision (regulation 2).