New Insolvency Code of Ethics
From 1 May 2020, a new Insolvency Code of Ethics will become effective and it is important that insolvency practitioners are aware of the latest key sections. The new Code will replace the previous Code of Ethics which has been effective since 1 January 2009.
The structure of the new Code largely remains the same, along with the five fundamental principles of integrity, objectivity, professional competence and due care, confidentiality and professional behaviour.
The changes to the Code include the expansion of the following sections:
- specialist advice and services; and
- referral fees and commissions.
There are also new sections on:
- the insolvency practitioner as an employee; and
- non-compliance with laws and regulations.
As before, there are helpful specific examples provided in the final pages of the Code which identify practical situations, setting out correctly how to apply the framework within the Code.
Even during the unpredictability presented by Coronavirus (COVID-19) and consequential changes to insolvency legislation (as set out in our previous article https://www.actons.co.uk/latest/2020/03/covid-19-changes-to-the-insolvency-laws/), it is paramount that Insolvency Practitioners are aware of the latest changes and continue to comply with the Code.
Posted on April 22, 2020