Open Letter from Director of Policy at The Insolvency Service:
NEW INSOLVENCY RULES
I am writing to update you about progress on work to produce a new set of Insolvency Rules to replace the 1986 Rules.
We had hoped to be in a position to publish a consultation draft of the new Rules this summer but unfortunately this does not now appear likely. The drafting lawyers are nearing completion of the draft, incorporating many constructive comments that were made by the small Focus Group that we established last year. However, in the next few weeks insolvency legislation is to be reviewed as part of Government’s Red Tape Challenge programme and it will be important to ensure that comments made as part of this process are taken into account in the Insolvency Rules project. As a result, we now anticipate that the consultation on the new Rules will not begin until 2013. We still plan to leave that consultation open for a period sufficient to allow stakeholders to review and comment upon the document. Consequently the new rules are not likely to come into force before October 2014 and we plan to let users have sight of the final version well before the implementation date.
The Red Tape Challenge aims to reduce and improve the stock of regulation on the statute book, drawing on comments made by business, civil society organisations and the public and aims to root out unnecessary, overcomplicated regulation. Once the insolvency theme is launched, stakeholders and the public will have five weeks to comment on over 100 insolvency ‘regulations’ including both primary and secondary legislation (but excluding Fees Orders, which are out of scope). A full list of the insolvency regulations that will be included in this exercise will be published on the Cabinet Office website at http://www.redtapechallenge.cabinetoffice.gov.uk/home/index.
I hope that this information is helpful to you. Should you have any queries please contact my colleague Mike Chapman on 020 7291 6765 or at [email protected] .
Director of Policy
Our Insolvency Solicitors & Barristers are able to give you specialist legal information and advice on your businesses best insolvency options. Just click here to complete our online contact form or for a free initial telephone consultation with a qualified winding up lawyer call 02071830529.