How to become an IP

Who can become an ICAS licensed Insolvency Practitioner?

Since 29 December 1986, any person who engages in insolvency practice under the Insolvency Act 1986 (the Act) is required to hold an Insolvency Permit, or, subject to permission from the Institute's Council, an equivalent licence from another body.

Insolvency practice under the Act embraces the following appointments:

• In relation to companies:
   
  • Company liquidators, including liquidators in members' voluntary winding ups;
     
  • Company administrators and (administrative) receivers;
     
  • Supervisors of compositions or voluntary arrangements for companies, approved under Part 1 of the Act;
     
   
• In relation to individuals:
   
  • Interim or permanent trustees in sequestrations, trustees in bankruptcy or interim receivers of property;
     
  • Trustees under trust deeds for creditors or under deeds of arrangement for the benefit of creditors;
     
  • Supervisors of voluntary arrangements under Part VIII of the Act;
     
  • Acting as Judicial Factors of insolvent estates of deceased individuals
   

ICAS is a Recognised Professional Body under the Act and is authorised to licence not only ICAS CA members but also others who are not members. Non members are called Regulated Non Members. Therefore if you work in the insolvency sector but are not a CA you can still apply to ICAS and become licensed by ICAS as an Insolvency Practitioner.

PRE-REQUISITES FOR BECOMING A LICENSED INSOLVENCY PRACTITIONER  

Every applicant:

Complete the ICAS IP application form which sets out the following pre-requisites:

• References: two technical and one character reference;
   
• Examination requirements: have passed the Joint Insolvency Examination Board's (JIEB) exam or hold an equivalent qualification (see below);
   
• PII: hold the appropriate level of Professional Indemnity Insurance ;
   
• Experience: have met the knowledge and experience requirements. A total of 600 chargeable hours achieved during a 3 year period immediately prior to initial application for a permit will meet the minimum requirement for the grant of a permit;
   
• Fitness & Propriety: demonstrate that they are a fit and proper person ;
   
• Enabling bond: provide an undertaking to maintain an enabling bond.

Chartered Accountants - additional requirements:

• must hold a Practising Certificate (PC) from the appropriate professional body.

Applicants who are currently licensed by another RPB or authorised by the Secretary of State - additional requirements:

Satisfy the Committee that:

• they are so licensed/authorised; and
   
• they are in good standing with their RPB/Secretary of State;
   
• that:
  
  • there are no restrictions or conditions attached to their current licence; or
     
  • it would be appropriate for the conditions or restrictions attached to their current licence to be applied to any licence granted by ICAS; and
     
   
• undertake to secure the assignation or equivalent process of their bonds in favour of ICAS, undertake to comply with the bonding requirements of the Act or any regulations made under the Act and to make all relevant lodgements with and returns to ICAS.

Please click on the information below for copies of the relevant application forms and supplementary information:-

• Application Form for Insolvency Permit  
• Guidance Notes for Application  
• Insolvency Permit Bye-laws  
• Required Standards of Insolvency Practice  
• Succession Planning 

Data Protection Act 1988 and other information legislation

The information provided by you when completing the Application form will be processed by ICAS which, as a data controller, has to report the way in which the data is used.

1. The Institute may be required by legislation to pass pertinent information about a member to the Secretary of State for Business, Innovation & Skills or to another Recognised Professional Body with an interest in the member.
   
    
2. Applicants may, under Bye-law 10, be required to disclose books, records and papers in order that the Insolvency Permit Committee , or its appointed agent, can carry out a review to establish whether the member concerned is a fit and proper person to hold an insolvency permit.

How do I renew my licence each year?

From October 2011 all IP holders will be able to submit their annual IP application online, via the 'My Profile' section of the ICAS website.
Previously, the annual IP application form has required members to inform us of their details each year. The new form will be pre-populated with the details we currently hold for you and will, either, ask for confirmation that this information is correct, or ask you to provide details of any changes.

Insolvency Practitioners will be contacted to ascertain whether they would prefer to apply online, or would like to continue completing a paper copy of the new form.

On 1 October 2011, IP holders who have confirmed they wish to complete the form online, will receive an email notification with the new annual IP application form. IP holders who have requested a paper copy will receive this via first class post. As in previous years, members will have until 31 October to complete and submit the annual IP form.

Insolvency Practitioners will be updated on progress with the online annual IP applications and, as ever, we welcome any feedback. If you have any queries please contact us on insolvencyregulation@icas.org.ukor telephone 0131 347 0288.