On Nov. 5, UK GVT published the insolvency practitioners regulations.
UK GVT published the Insolvency practitioners (amendment and transitional provisions) regulations 2024 (StIn 2024/1090), which amends Schedule 2 to the Insolvency practitioners regulations 2005 (StIn 2005/524).
Follows UK GVT Dec. 2021 proposed insolvency practitioner reform, see #126499.
Overview of Regulations
Schedule 2, Part 2 to regulations sets out the requirements for the bonding framework.
Amends existing minimum requirements for insolvency practitioner bonding.
This is a form of security to protect creditors from losses caused by fraud or dishonesty of insolvency practitioners in their duties when appointed to an insolvency case.
The regulations update the monetary and other thresholds relating to bonding cover.
The bonding framework protects and benefits creditors through pay-outs where a bond claim is made, and this instrument modernizes that framework.
