R3 has produced two new guidance papers concerning personal insolvency:
FCA Guidance to Members (September 2016)
It has come to our attention that a number of IPs may be uncertain as to whether they are required to be FCA authorised or not when giving financial advice to consumer debtors and if so, whether a DPB exemption might apply should they be a member of ICAEW, ACCA, ICAS or CAI. Under the FCA regime persons providing regulated activities including (but not limited to) debt counselling or debt adjusting require authorisation by the FCA, unless they benefit from a relevant exclusion or exemption or are an appointed representative of an authorised firm. R3 has produced a reminder for IPs as to what exemptions and exclusions currently apply and when it would be appropriate for an IP to seek FCA authorisation. IPs are reminded to ensure that they do not act outside of the current scope of the FCA exclusion or DPB exemption without FCA authorisation. Carrying out regulated activities without being authorised is a criminal offence punishable by a fine and/or imprisonment.
The full R3 guidance may be found here.
Problem Areas in Bankruptcies – Protocol for IPs
During a bankruptcy procedure, the Trustee in bankruptcy has a number of duties to fulfil. In most cases, these duties may be performed without any difficulty. However, at times, dealing with the bankrupt or other individuals during the process may lead to conflict or disruption. For example, where a bankrupt is being un-cooperative or deliberately disruptive, refusing to answer correspondence or hand over assets, or where the bankrupt is being persistently belligerent. It is recognised that a case involving disruptive or vexatious behaviour is a challenge to a trustee and there is no ‘easy’ or ‘right’ way of dealing with it. R3 has produced new guidelines ‘Problem areas in bankruptcy – guidance for dealing with ‘difficult’ or vexatious individuals’. The suggestions included in the guidance may prove useful to an IP when deciding how to approach such cases. The guidance is not intended to be a list of each step an IP must take in every case, but rather a summary of the options which may be available in appropriate circumstances.
Full details of the guidance may be found here.