Sample materials for Compliance Awareness Online Learning

You can preview the different types of content included in our new modular Compliance Awareness Online Learning course in our free samples. They will take just a few minutes to view or complete. Click here to access the free samples.

Instructional video content

Concise, comprehensive videos that you can watch, learning when and where is most convenient for you.

Reference materials and handouts

Downloadable documents to read and keep for future use and reference.

Knowledge checks

Multiple-choice knowledge checks to reinforce the value of the learning.

To sample the Ethics and Professional Standards Quick Quiz, register as a user with your name and email address.

Course Modules

Our Compliance Awareness Online Learning course is delivered in four modules, which you can mix and match to cater for your practice’s needs:

1.      Anti-money laundering (AML)

2.      Data privacy (GDPR)

3.      Vulnerability awareness

4.      Ethics and professional standards

Click here or below to watch our one-minute introductory video.

To find out more, click here, call 0845 601 7570 or email courses@insolvencysupportservices.com

 

 

ISS Training launches Compliance Awareness Online Learning

Insolvency Support Services’ training division, ISS Training, has launched an innovative new Compliance Awareness Online Learning course, adding an online learning platform to the firm’s course delivery methods.

The course is delivered in four topical modules: anti-money laundering, data privacy, vulnerability awareness, and ethics and professional standards.

Alison Curry, a director of Insolvency Support Services, commented: “We have developed this course in this format to assist insolvency practices manage compliance risks cost-effectively, meet their training obligations and protect their firm’s reputation.

These days insolvency practitioners and their teams must have a sound knowledge of practice areas beyond the scope of technical insolvency training.

There have been significant legislative changes in the areas of anti-money laundering and data protection, vulnerability awareness is high on the political agenda, and ethics and professional standards issues continue to dominate the complaints mailboxes of the regulators.

If all team members have a good grasp of the essentials of these subjects, they can flag issues with their managers as they arise. Failing to identify an issue in a timely manner presents a risk to the practice that can result in reputational damage to the practice and regulatory sanction for its insolvency practitioners.”

More information about Compliance Awareness Online Learning  including an introductory video and sample content, can be found here.

Managing risk in your practice

Effective compliance awareness

A frequent observation among our clients is how, increasingly, insolvency practice seems to be less about applying the Insolvency Act and rules and more about meeting other obligations; whether it be anti-money laundering (AML), GDPR, vulnerability awareness or the ever-evolving expectations of the regulators.

But ensuring you and your team have a good level of awareness of these peripheral aspects of our day-to-day work shouldn’t be seen as a distraction from the real task at hand – it is central to controlling risk presented to your business. And in some cases, such as AML and data protection, it is a legal requirement. Embedding a culture of compliance awareness, that is routinely acted upon throughout the firm within daily tasks, acts to nip potential issues in the bud. So, what can you do to manage risk in your practice?

Effectively managing risk is essential to success

Risk management is defined as the forecasting and evaluation of financial risks, together with the identification of procedures to avoid or minimise their impact. The requirement to assess various forms of risk has become a recurring theme in many areas of law and regulation. While it can all seem somewhat nebulous, getting it wrong can be costly in terms of time, fines and penalties and reputational damage to you and your firm.

Models for managing risk identify four key strategies: avoid, control, accept and transfer. The risk acceptance strategy (i.e. just accept any penalties if and when they arise) isn’t a viable option for a licensed professional, not least given the gravity of the risks we manage and the severity of the potential punishments that can be meted out by the likes of the Information Commissioner’s Office (ICO) or the Financial Conduct Authority (FCA). Given the personal nature of insolvency licensing, the opportunities for risk transference are limited to those that can be insured against, and avoiding risk entirely isn’t likely to result in the acceptance of many appointments. So practically speaking, we are left with the option of controlling the risk we face, as best we can.

Start with the known unknowns

None of us have a crystal ball. The “unknown unknowns” (unexpected or unforeseeable conditions) will pose a potentially greater risk simply because they cannot be anticipated based on past experience. Challenging circumstances will necessarily occur from time to time. This is where robust internal policies and procedures come in and the assistance of lawyers and specialist advisers will be called upon.

However, on a daily basis there are “known unknowns” that we can better manage by improving our understanding of what is expected of us and what to look out for. In key compliance areas it isn’t just the licensed professional that needs to be alive to the risks, everyone has a part to play in the risk management process, whether that be in detecting a financial crime, keeping personal data private, meeting the needs of a vulnerable client or maintaining expected professional standards requirements. A chain is only as strong as its weakest link.

Knowledge is power

When it comes to managing risk, you can only really do so if you are aware of the form those risks might take and what is expected in terms of response. Experienced practitioners will have an inherent understanding of the risks in an appointment, built upon their years of experience, and their internal alarm bells will ring when they detect something out of the ordinary. That knowledge is applied almost subconsciously and not always articulated to those around them. We need to share the key elements of that knowledge and experience with the entire team in order to maximise its effectiveness on risk management. Training the team need not be costly, unduly time consuming nor disruptive to the business, and can yield significant benefits. And we can help you do that.

It’s not entirely optional

The Data Protection Act 2018 and the Money Laundering Regulations 2017 contain mandatory staff training requirements. The FCA is currently consulting on further guidance around the treatment of customers in vulnerable circumstances which places a strong emphasis on the need to upskill client-facing staff. While FCA regulation has not come to us all just yet, it gives a clear steer on the directions of travel for regulatory expectations when dealing with those in vulnerable circumstances. And that may include directors and employees, not just indebted individuals.

Also sometimes overlooked are the expectations of the Ethics Code; which states up front that “Although an insolvency appointment will be of the insolvency practitioner personally rather than his practice, he should ensure that the standards set out in the Code are applied to all members of the insolvency team.” Realistically, the team can only do that if they are equipped with a basic knowledge of what professional standards are expected of insolvency practitioners and why.

We can help

We can help your team manage these key compliance risks with the New ISS Compliance Awareness Online Learning Course. For further information contact: courses@insolvencysupportservices.com

First published in the August 2019 edition of RECOVERY News and reproduced with the permission of R3 and GTI Media.

100% pass rate for ISS Training’s CPI and CPPI students

It’s a clean sweep for ISS Training’s students in the June 2019 CPI and CPPI exam sitting. Every single one of our candidates has passed their exam, with a third achieving a merit.

CPI

Chris Addison, 180 Advisory

George Elliott, Campbell Dallas

Emma Hardie, Cowan & Partners

Jemma Kirk, Thomson Cooper (with merit)

Kirsti Kornav, FRP Advisory (with merit)

CPPI

Tommy Gallacher, Campbell Dallas

Mark Inglis, MLM (with merit)

Fiona McAnnany, Grant Thornton

Gillian McIlroy, AiB

Our director Eileen Maclean, who delivers our CPI and CPPI training, said: “We’re chuffed to bits for all of our students and feeling enormously proud of them all. It’s hugely rewarding to see everyone’s hard work paying off. Very well done, class of 2019!“

Enrolment for our 2020 CPI and CPPI training will be open soon. If you would like to discuss your options, please speak to us at any time on 0845 601 7570 or email courses@insolvencysupportservices.com

MVLs in Scotland – the law of unintended consequences?

Eileen Maclean has been hot on the heels of the new Insolvency (Scotland) Rules and suggests there could be risks for liquidators and members in MVLs.

Scotland’s new corporate insolvency Rules, the Insolvency (Scotland) (Company Voluntary Arrangement and Administration) Rules 2018 and the Insolvency (Scotland) (Receivership and Winding up) Rules 2018 (the new Scottish Rules) come into force on 6 April 2019.

Since their publication, we have been poring over them. We’ve had a good look at MVLs under the new Rules and highlight some potential issues in this article – not all of them necessarily intended by the Rules’ creators. No doubt as issues arise and are considered, practice and interpretation will develop. But as things stand, what are we faced with?

Transitional and savings procedures

The new Scottish Rules apply to cases open at 6 April 2019, save for any express transitional or savings provisions. Very few apply to MVLs.

Part 4 of the current 1986 Scottish Rules only applies to MVLs as specified in Schedule 2. Part 7 of the new Scottish Rules states that it ‘applies in winding up’. No definition of ‘winding up’ is given, but some Rules in Part 7 clearly refer to MVL, CVL or WUC. Generally, therefore, Part 7 applies to all processes, solvent or insolvent, voluntary or compulsory.

What does that mean in practice? Statutory interest will apply from 6 April onwards, when currently it doesn’t, to both existing and future cases. Statutory processes that previously did not apply to MVLs, eg accounting periods, will do so going forward and, in the absence of any savings provisions, for existing cases too.

Creditor claims

Where a liquidator in an MVL is dealing with creditor claims, the accounting period process specific to Scotland now applies, with all its attendant deadlines. The first accounting period is six months and cannot be shortened. Part 7, Chapter 4 Claims by Creditors now applies (which makes sense – why have a different basis of calculation in an MVL). R7.32 Payment of Dividends states that on the expiry of the appeal period (or the final determination of the last such appeal) the liquidator must pay to the creditors the dividends in accordance with the scheme of division. The small debts provisions at R.34 apply.

Any liquidator dealing with a claim now must do so within the context of the Rules. Claims by creditors must be submitted in terms of R7.16 not later than eight weeks before the end of an accounting period. The liquidator adjudicates per R7.19 and must, not later than four weeks before end of the period, accept or reject the claim. Creditors then have a right to appeal to the court not later than 14 days before the end of the period. These time limits can be varied by the court per R7.31(2)(c )(ii) (there won’t be a liquidation committee in an MVL). Alternatively, the liquidator could apply to court to set an earlier last date for claims per S153 of the Insolvency Act 1986.

The way the new Rules apply, it will in practice shift the onus onto the directors to make sure that creditors are paid pre-appointment.

While there might not be many MVLs where the liquidator is dealing with creditor claims, there will be some. And the way the new Rules apply, it will in practice shift the onus onto the directors to make sure that creditors are paid pre-appointment.

Statutory interest

R7.27 Order of Distribution imports statutory interest into MVLs where currently there is none, albeit the rate in Scotland drops to 8% from 15% on 6 April 2019. It makes sense that statutory interest applies consistently to MVLs UK-wide, and the approach to minimising statutory interest on corporation tax is back to being a UK one. Again, there are no savings provisions here, so interest now appears to apply in relation to MVLs open as at 6 April 2019. On the bright side, future debts provision for discounting at the official rate back to the date of liquidation is now included to all winding ups in R7.22.

What this potentially means in practice

  • Directors must ensure that all outstanding liabilities of the company are paid pre-appointment and, if not, members need to understand that there is a potential statutory interest liability (of up to six months).
  • Possible court application post-appointment per S153/R7.31 to deal with claims in shorter timescales than those set out in the Rules.
  • Unless there is active management of the timescales in R7.19, creditors will have to wait to get paid, assuming no appeal to an adjudication, until no earlier than 14 days before the end of the first accounting period. That entitles them to approximately 5.5 months of statutory interest as a result. That will be material in some cases, not in others. The cost of making an application to court may be worth it in some cases, but not in others.
  • Where you have a significant exposure to statutory interest in an ongoing MVL, consider paying creditors before 6 April 2019 (and use s153 accordingly).

What was previously a straightforward process now seems overly complicated, and rather goes against the spirit and intention of the new Rules.

All of this raises issues of risk for MVL liquidators and additional cost for members, where creditors have not been paid in advance of appointment. What was previously a straightforward process now seems overly complicated, and rather goes against the spirit and intention of the new Rules.

Insolvency Support Services have been examining the new legal requirements and their practical implications at a series of courses, which we can offer as bespoke in-house training, and will be providing document packs and compliance support.

For further information about how Insolvency Support Services can assist you in adjusting to these changes, contact: enquiries@insolvencysupportservices.com

 

First published in the February 2019 edition of RECOVERY News and reproduced with the permission of R3 and GTI Media.

We’re speaking at R3’s Series of SPG Technical Reviews

Insolvency Support Services’ Eileen Maclean and Alison Curry are looking forward to speaking at R3’s series of SPG Technical Reviews, specifically designed for insolvency and restructuring professionals in small and medium-sized practices, in the next few months.

Their practical, focused sessions will cover the new Scottish Insolvency Rules, highlighting key changes and differences to the current England and Wales Rules.

Want to know what has changed and why? You can catch Eileen at the R3 SPG Technical Reviews in Birmingham (26 February) and Leeds (30 April) and Alison in London (14 February) and Exeter (9 May).

For more information and to book, click here.

If you need more than an overview and would like to book one of our half day courses on the new Scottish Rules, click here for more information. We’ve also added an extra Edinburgh course on 19 February due to demand. Booking is straightforward: contact Danielle Kelly and the ISS Training courses team on 0845 601 7570 or on courses@insolvencysupportservices.com.

 

Insolvency (Scotland) Rules 2018 – are you ready?

The long-awaited Scottish Rules are here!

Two sets of Rules

Due to the nature of the partially devolved corporate insolvency regime, Scotland’s Rules are found in two pieces of secondary legislation.  The Insolvency (Scotland) (Company Voluntary Arrangement and Administration) Rules 2018 and the Insolvency (Scotland) (Receivership and Winding up) Rules 2018 (“the new Scottish Rules”) were laid last month and will bring Scotland’s corporate insolvency regime broadly in line with England and Wales from 6 April 2019. Are you ready?

Decisions, decisions…

Perhaps the most significant change is the restriction placed upon an office holder’s ability to hold a physical meeting of creditors. Decisions of creditors are to be obtained using either deemed consent (where this is available) or by one of a number of prescribed decision procedures: correspondence, virtual meeting or electronic voting, with physical meetings available only where requested by the requisite number or value of creditors (the 10/10/10 rule).

Practitioners South of the Border have got to grips with these new requirements over the last two years, but not without some teething pains. Concerns remain about verifying the identity of a participant in a virtual meeting, and the potential implications of a person being excluded because of a technological failure. Perhaps counter-intuitively, it seems removing the requirement of a physical meeting has not increased creditor engagement.  But the good news for practitioners dealing with Scottish appointments from 6 April 2019 onwards, is that a lot of creditors and stakeholders will be familiar with the decision-making process already.

Effects of the new Rules

  • Consolidation: There have been 32 years of amending statutory instruments since the existing Rules came into force in 1986 and the new Scottish Rules contain impressive lists of revocations. In theory, the new Rules should be easier to use, once bedded in, though there will undoubtedly be a steep learning curve at the outset.  Have your destination tables to hand!
  • Future proofing: By describing what needs to go in a notice, report or return, rather than prescribing a particular form, the new Scottish Rules aim to reduce the need for statutory forms and amending statute for alteration. This approach is intended to provide more flexibility, though has resulted in the inclusions in the Rules of lengthy lists of standard contents. Your standard documents and notices will need to be reviewed and amended.
  • Modernisation: The language has been modernised and made gender neutral, in accordance with current drafting practice. The definitions applied by the Rules mirror those used in the England & Wales Rules broadly although there are some small (and noteworthy) variations. Where possible, the new Scottish Rules adopt a “common parts” approach with the aim of reducing repetition and unnecessary divergences between procedures.
  • Cost reduction and improved engagement: Ultimately, the new Rules give effect to the policy changes which resulted from the UK Government’s Red Tape Challenge initiative. Reducing unnecessary meetings, providing for opting out and allowing small claims to be admitted without a statement of claims are all intended to reduce cost and improve creditor engagement.

Remuneration and accounting periods

As those of you dealing with Scottish cases know, the process for obtaining approval for remuneration is distinct from England & Wales and invariably involves the court.  The remuneration approval process will remain largely unaltered, which limits the impact of the decision-making procedures when compared to England & Wales.

A more welcome revision may be the changes to the operation of accounting periods that allow an IP to manage accounting periods without court or committee approval.  The first two six-month accounting periods will remain, but thereafter a practitioner can defer a claim for remuneration without court or committee approval.

Key steps for your practice:

  • Gain familiarity with the new Rules at an early stage – come on one of our courses!
  • Review files for application of transitional and savings provisions
  • Amend document packs to reflect new standard contents – we can assist with packs
  • Consider what form of decision procedure will be appropriate for the size and nature of the cases you administer
  • Consider the benefits / opportunities presented by these changes in terms of cost saving to how you operate

We will be examining the new legal requirements and their practical implications at a series of courses running throughout January and February 2019 and providing document packs and compliance support.

For further information about how ISS may assist you in adjusting to these changes, contact: enquiries@insolvencysupportservices.com

 

INSOLVENCY (SCOTLAND) RULES 2018

The new Insolvency (Scotland) Rules 2018 are finally here!
Due to commence on 6 April 2019, now is the time for familiarisation, planning and preparation. Here’s how we can assist you.

Intensive Insolvency CPD / CPE Catch Up Course

Looking to catch up on your CPD? It’s that time of year when we submit our licence applications and sign off that we have fulfilled our CPD obligations.

Join fellow professionals and the ISS Training team for an intensive two days and 12 hours of CPD / CPE in advance of your annual licence renewal.  It is only £495 plus VAT for the two days.

This course will cover key compliance areas for all insolvency professionals and provide optional streams to cater for the types of work your practice undertakes.  Choose the stream that suits your business and development need.  Delivered in a group, interactive format, you will have an opportunity to discuss with peers the issues you’ve encountered in practice and pick the brains of our compliance experts, Eileen Maclean and Alison Curry.

CPD Learning Outcomes

  • Clear and concise guidance to legislative and regulatory requirements governing each area
  • An opportunity to discuss current issues and best practice with fellow professionals
  • 12 hours of bespoke and relevant CPD/CPE to support your annual license renewal

Who should attend

This course is aimed at licenced Insolvency Practitioners and their staff, who are looking for a comprehensive introduction to the subject matter or an update to their technical knowledge and skills.

Speakers

Eileen Maclean MA Hons MIPA MABRP MBA, director of Insolvency Support Services Limited

Alison Curry LLB Hons MIPA, director of Insolvency Support Services Limited

Location and Date

Manchester, 21/22 November, 9.30am to 5.00pm

London, 5/6 December, 9.30am to 5.00pm

Cost

Half day course: £155 + VAT
Full day course: £295 + VAT
All four half day courses: just £495 + VAT

Fees include all course documentation, lunch and light refreshments

CPD

3-12 hours depending on modules attended

Course Outline

Day 1

Session 1: Know Your Customer:  Systems & Procedures Workshop
How you can improve your firm’s KYC in a cost effective and proportionate way to manage the risks presented by conflicts of interest and the AML regime.

Session 2: SIPs Update
Refresh your knowledge of these key regulatory requirements.

Session 3:
Choose from:

Option A: Current issues in IVAs
Join Alison for an examination of the current regulatory focus and developments in IVA practice.

Or 

Option B: Current issues in MVL
Eileen presents an overview of the particular risks incumbent in MVL work and how these can be effectively managed.

Day 2

Session 1: Understanding Vulnerability
Vulnerability, and particularly the impact of mental health problems, has never been higher profile. Consider what adjustments your business operations require, to assist your clients and avoid adverse PR.

Session 2:
Choose from:

Option A: Bankruptcy Update
Alison leads the discussion on how practice within the Official Receivers is developing and examines the real impacts of bankruptcy on those you assist with their debt situation.

Or

Option B: Sectoral Challenges
With retail failure seldom out of the news, the hospitality sector struggling to recover its footing and the construction industry facing faltering house prices, Eileen will look at some sector-specific challenges faced by UK businesses and the owners and creditors you advise.

Session 3: Data Privacy Workshop
Data privacy cuts across all areas of practice management. Understand what steps you need to take, both as an insolvency professional and as a business person.

 

CPI and CPPI exam success for ISS Training students

ISS Training is delighted to congratulate its CPI and CPPI students on their success in the June 2018 CPI and CPPI exam sitting.  Our students achieved great results, including one distinction and three merits, and we are thrilled that all of their hard work paid off.  Well done, class of 2018!

Enrolment for the 2019 session is now open. For full details of the classes and dates for CPI click here and for CPPI click here.

If you would like to discuss your options, please speak to us at any time on 0845 601 7570 or courses@insolvencysupportservices.com