On 29 October 2013, the Insolvency Practitioners Association (IPA) released the long anticipated third Edition of the Code of Professional Practice for Insolvency Practitioners (‘the CoPP’). It comes as no surprise that the updates to the CoPP focus on transparency, remuneration, and disbursements.
In the 24 hours between the amended CoPP’s release and penning this article, we have been busy reading and interpreting the amendments. Following is a summary of the four major changes we have identified:
- The CoPP has been amended to clarify that Members practicing insolvency outside Australia are bound by the CoPP.
- Referral sources must now be disclosed in declarations of independence relevant relationships and indemnities (commonly known as a DIRRI). The IPA has explained that this is due, in part, to complaints received about the behavior of referring agencies that are not members of the IPA and not bound by the CoPP.
- Pre-appointment quotes or estimates for remuneration provided to directors/debtors must now be given in writing and disclosed to creditors in the first remuneration report. The IPA had developed a new template for this purpose.
- Disbursements will be subject to enhanced reporting requirements. This will include general information on the nature and basis of the disbursements claim. A declaration that the disbursements were necessary and proper is also required.
At Worrells we have always embraced transparency and disclosure. Regular visitors to our website will know that we have been ahead of the game for some years. Much of the above information is available via the client information section of our website and is updated twice daily.
Over the coming months we will be reviewing the revised CoPP in greater detail and incorporating the changes in to our standard procedures and reports. We will provide further commentary on this matter in future e-Updates.
Watch this space!