# The Insolvency Practitioners Regulations 1990, Regulation 12: Requirements for security or caution


(1) For the purposes of section 390(3)(b) of the Act the requirements in respect of security or caution for the proper performance of the functions of an insolvency practitioner are that:–
(a) there is in force at the time when an insolvency practitioner is appointed to act in relation to any person a bond which complies with the requirements set out in Part I of Schedule 2 to these Regulations under which the surety or cautioner is liable in the general penalty sum of £250,000; and
(b) there is issued under that bond as soon as reasonably possible after the appointment of the practitioner a certificate of specific penalty in respect of the practitioner acting in relation to that person under which the specific penalty sum is not less than the value of that person’s assets estimated in accordance with Part II of the said Schedule; and
(c) where, at any time before the practitioner obtains his release or discharge in respect of his acting in relation to that person, he forms the opinion that the value of the assets comprised in the estate of that person is higher than the penalty sum under the current certificate of specific penalty (being a penalty sum less than £5,000,000), there is issued forthwith a further certificate of specific penalty in respect of the practitioner acting in relation to that person under which the penalty sum is at least equal to that higher value or £5,000,000 (whichever shall be the less).
(2) In paragraph (1)(c), “the current certificate of specific penalty” means the certificate for the time being in force which has been issued pursuant to paragraph (1)(b) or (c), as the case may be.
(3) The bond referred to in paragraph (1) shall be retained by the recognised professional body or, as the case may be, the competent authority by which the practitioner has been authorised to act as an insolvency practitioner.

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Source: https://www.legislation.gov.uk/uksi/1990/439/regulation/12 (the official version)
Page: https://openlegislation.uk/insolvency-practitioners-regulations-1990/regulation-12
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.