Insolvency Practitioners (IPs) deal with individuals and businesses that are experiencing financial difficulties. They administer the assets and funds of the insolvent estates, which can amount to significant sums, and frequently require to effect redundancies. Insolvency is therefore a highly regulated area of practice and IPs must complete rigorous training in many aspects of law and practice. They must also keep up to date with developments in insolvency.
The Insolvency Act 1986 introduced provisions which require anyone who wishes to accept insolvency appointments to obtain a licence to do so having passed the appropriate examinations. A Joint Insolvency Examination Board (JIEB) was set up to administer the Joint Insolvency Examinations (JIE). The Act excludes certain individuals from acting as insolvency practitioners.
Insolvency licences are issued by Recognised Professional Bodies (RPBs), and currently by the Insolvency Service. The Institute of Chartered Accountants of Scotland (ICAS) is an RPB. Special provisions apply to nationals of other EEC states, and Switzerland, if they hold an insolvency qualification from their country.
Training
ICAS facilitates a range of insolvency training courses leading towards varying qualifications (JIE, CPI, CPPI). The training sessions are mainly held at the Institute's offices in Edinburgh. Details of these courses are provided in the following sections.
Joint Insolvency Examinations (JIE)
The JIEB examinations are written exams to test the knowledge and practical skills required to be an insolvency practitioner. Candidates may choose whether to sit the Scottish papers or the England & Wales papers. The examinations are held annually.
To take the exams candidates must be registered with one of the Recognised Professional Bodies.
The examination comprises three papers:
- Liquidations
- Administrations, Company Voluntary Arrangements (CVA) and Receiverships
- Personal Insolvency
All three papers have to be passed, though not necessarily at the same time. For more detailed information on the examinations please refer to the following article
Click here for student guidance on the examinations.
How to become an ICAS Insolvency Practitioner
The two ways of becoming an ICAS licensed insolvency practitioner are
1) by sitting and passing the JIEB exams or
2) by transferring your licence from another Body. Licences may be issued to non-members who have met the examination and competence requirements of the Institute. These insolvency practitioners are referred to as Regulated Non Members.
The pre-requisites for obtaining a licence can be found in the Regulation and Monitoring section of our website by clicking here.
In addition to JIE training ICAS runs several courses during the year for individuals who wish to gain a better understanding of insolvency processes or who wish to refresh/update their knowledge. Attendance at these courses will provide a valuable grounding in insolvency law and procedure.
Certificate of Proficiency in Insolvency (CPI)
The CPI is an intermediate insolvency qualification which is recognised as a test of competence in insolvency administration. The exam, which covers all the key areas of insolvency, is set by the Insolvency Practitioners' Association and can be sat in both England & Wales and in Scotland. For those working in Scotland there is a Scottish syllabus which takes account of the differences in legislation north and south of the border.
Although passing the CPI exam does not entitle candidates to any exemptions in the Joint Insolvency Exams (JIE) it provides a sound grounding for those considering taking JIE.
The CPI exam is held annually and consists of one 3-hour paper. Approximately two-thirds of the paper relates to corporate insolvency and the remaining one-third relates to personal insolvency. Forty percent of the paper consists of multiple choice questions with the rest of the paper requiring essay style responses. ICAS facilitates training for the CPI exams which consists of 12 modules running annually from January to May. The exam itself usually takes place in June.
Certificate of Proficiency in Personal Insolvency (CPPI)
The CPPI is a qualification introduced by the Insolvency Practitioners' Association in 2009 as a test of personal insolvency competence, at an equivalent level to CPI. It is directed at those working in the personal insolvency sector who wish to obtain a qualification to demonstrate a thorough understanding of statutory and non-statutory solutions in personal insolvency.
ICAS facilitates training for the CPI exams with training being provided in modules. A Scottish exam was offered for the first time in 2010. The exam format is similar to that provided for the CPI exams. The CPPI exam is held annually.
Other Insolvency courses
Each year ICAS offers several insolvency courses in both corporate and personal insolvency. These include:
"An Introduction to Personal Insolvency",
"An Introduction to Corporate Insolvency",
"Employee claims",
"Trading in Insolvency"
Additional courses are provided when necessary to address any changes in legislation and to provide clarity for IPs and other interested parties. All training, courses and conferences are open to the public; different course fee levels apply.
Further information on all insolvency training and courses that ICAS offers can be found on our website at Business Courses or can be obtained by emailing: cabusinesscourses@icas.org.uk.