Insolvency practitioner sanctions: IPA member and Licensed Insolvency Practitioner
A Disciplinary Consent Order was made against an IPA member and Licensed Insolvency Practitioner
Applies to England, Scotland and Wales
Documents
Details
Summary of complaint:
Complaint 1
He, in his capacity as liquidator of a company, when discussing settlement of the costs of the company’s former liquidator,
(a) failed to inform him that he had drawn a substantial sum in respect of his own fees, and/or
(b) failed to inform him that he had agreed with an adviser that no fees would be paid to the former liquidator and/or that the insolvency practitioner would be allowed to take fees on the understanding that the former liquidator would not be entitled to take his fees, in breach of:
(i) paragraph 36 of the Insolvency Code of Ethics (issued 2014), and/or
(ii) the fundamental principle of integrity as set out in paragraph 4 of the Insolvency Code of Ethics (issued 2014), and/or
(iii) the fundamental principle of professional behaviour as set out in paragraph 4 of the Insolvency Code of Ethics (issued 2014).
Complaint 2
In breach of the fundamental principle of professional competence and due care of the Insolvency Code of Ethics, the practitioner;
(a) failed to pay an amount payable to the former liquidator, a person employed or authorised to assist in the preparation of a statement of affairs or of accounts, in breach of Rule 4.218(3)(k), (o) and (q) Insolvency Rules 1986 and/or Rule 6.42(4)(d), (h) and (j) Insolvency (England and Wales) Rules 2016, and/or
(b) paid out of assets of the company his own remuneration in priority to an amount payable to the former liquidator, a person employed or authorised to assist in the preparation of a statement of affairs or of accounts, in breach of Rule 4.218(3)(k), (o) and (q) Insolvency Rules 1986 and/or Rule 6.42(4)(d),(h) and (j) Insolvency (England and Wales) Rules 2016.