Technical Update April 2013

Technical Update April 2013

This technical update details

SIP 3 Draft

• Re-registration of removed charge sought due to mistake
after bankruptcy
• Abuse of process or not?
• COMI reconfirmed
• Ethics – conflict of interest
• Adjudicator’s decision is not the equivalent to a court
• Software licence survived insolvency
• Letter of comfort not binding

• EU Micro Directive

• Government to tackle payday lending concerns
• VAT accounting for LPA Receivers

JIEB 2013 and SIPS

You are ready to tackle the JIEB and have no idea where to start…but the starting place is obvious … the SIPs.

Whilst I know the number of questions and marks which have been allocated SIPs is lower than it has ever been in recent exam papers that does not mean you may neglect the SIPs.

Below are some hints and tips to help you find your way around each SIP and suggestions for what you should be learning.

This is a very small SIP but relates to the Ethical Code of Practise which is a 31 page document at the front of the IPA handbook. You do need to have read the Code and create a mindmap so I would suggest tackling these together.

SIP 2 has recently been updated and simplified moving away from a prescriptive approach to a principled based approach rather like Ethics. Unfortunately for those studying JIEB this does not help, so as well as doing a mindmap of this SIP i would also recommend doing a mindmap for the Practical Guidance Note which may be found on the R3 website


Whilst this SIP has not been amended I would refer you to Dear IP 54 and the Guidance note issued by BIS. the guidance note is excellent and gives information on the evidence to be collected for each type of offence under the CDDA. I would therefore recommend thoroughly reviewing this and making a mindmap of practical steps to go with your SIP 2 & 4 mindmaps.

TR 5
This is an old technical release and therefore the case law referred to is not current. Make notes on the general principles but when reviewing past exam papers look for more current case law to add to this mindmap.

TR 6
My comments on TR5 are just as relevant to TR6.

A new SIP so again a principle based approach but you should be able to make a good mindmap.

Wow the SIP with the most information to learn. There are lots of ways to tackle this but if you feel defeated by the sheer volume of information break it down into 3 mindmaps with pre meeting issues ie convening, venue, notices, information, proofs, proxies and inspection, then another mindmap with attendance and information to provide at the meeting then finally conduct of the meeting, post meeting information and report.

Now that the guidance papers are no longer part of the SIP I think this must be less daunting to review and create a mindmap. The appendix holds the key information so I would suggest reading the whole SIP then creating a mindmap for the Appendix then go back and create a mindmap for the body of the SIP ensuring that anything dealt with in the appendix is left out.

SIP 10
The smallest SIP. Do you need a mindmap for this? Read R8.2 and decide. And remember 8 + 2 = 10 so nice simple way to learn what you need to about this SIP.

SIP 11
Another succinct SIP but make sure you read the guidance paper in the IPA handbook regarding Client Money Regulations.

SIP 12
Be careful with this SIP it refers to old rules and note the changes introduced by IAR 2010 and therefore is not correct about the statutory provisions. I would suggest working your way through the statutory provisions and inserting the correct reference to the rules and therefore the correct statutory provision ie minutes are no longer required to be kept with the companies records but with the insolvency records. Also in compulsory liquidations and bankruptcies the resolutions are no longer required to be filed in court. I think the only thing you actually need to learn from SIP 12 is the best practice information about what should be included in the minutes.

SIP 13
I know it is tempting to just learn the disclosure requirements from this SIP but i think you actually need a mindmap for all of it.

SIP 14
You would think this SIP would be obsolete with the ease of out of court administration appointments but then you would be missing some very important principles about how you apportion money between fixed and floating assets and how you deal with creditors claim which equally apply ion Administrations. So again I would expect this SIP to be learnt and a mindmap does need to be created.

SIP 15
If you have a mindmap for this SIP then you are doing something wrong. I would suggest sitting down with the Act and the Rules and going through the SIP paragraph by paragraph by reading the relevant section, paragraph, rule or regulation. Remember to tag the stuff in the Regulations as this may not be so easy to find. Ok that probably took 3/4 hours but well worth the trouble as you now are familiar with the issues likely to arise on committees and your committees mindmap is going to be very small.

SIP 16
Again tempting as it would be to just learn the list of things you need to disclose I would suggest that is not the best approach. I would invite you to read Dear IP 42 which gives clear guidance on information to be disclosed and adopting a principles based approach as opposed to a tick box approach.

SIP 17
Anther SIP that is tending towards the obsolete but you do need to know what responsibilities the office holder has in respect of the books and records and who has authority to dispose of them and who doesn’t. I would also suggest reading the Insolvency Regulations 1994.

If you can complete as many mindmaps as possible before the New Year and put them on your all then you will be ahead and making sure that you are on the 2014 pass list.

Good Luck