RCUK fully understand that there is nothing more important for you as an Insolvency Practitioner than being compliant and adhering to the prevailing statutory framework, the statements of insolvency practice and the fundamental principles embodied in the insolvency code of ethics.
RCUK has continually strived to introduce standards and welcomes regulation in our own industry. The objective of mirroring your key ethical standards in relation to integrity, objectivity, professional competence and due care, confidentiality and professional behaviour is a top priority for RCUK and its directors.
RCUK work under the regulatory standards of the Claims Management Regulator and through establishing agreed and documented standards with the Redundancy Payments Service, following a full audit process, RCUK’s standard working practices will assist you to remain compliant. A good example of this is making sure that you comply to SIP2 and have the appropriate ‘books and records’ required to support the submission of the RP14/14A’s.
According to the ICEAEW SIP2 is:
“This Statement of Insolvency Practice (SIP) is one of a series of guidance notes issued to licensed insolvency practitioners with a view to maintaining standards by setting out required practice and harmonising practitioners’ approach to particular aspects of insolvency.
SIP 2 is issued under procedures agreed between the insolvency regulatory authorities acting through the Joint Insolvency Committee (JIC). It was commissioned by the JIC, produced by the Association of Business Recovery Professionals, and has been approved by the JIC and adopted by each of the regulatory bodies listed below:
Recognised Professional Bodies:
Contained within SIP2 is the requirement to obtain a company’s books (including the statutory books and minutes), records and other accounting information (including computerised records). There have been recent examples of regulatory bodies bringing sanctions against insolvency practitioners who have submitted RP14/14A’s to the Redundancy Payments Service without first obtaining and checking appropriate company books and records.
RCUK has been audited by the Redundancy Payments Service. What was established in this audit in regards to directors' redundancy claims was as follows:
We are pleased to see the issue of claims being supported by the Redundancy Payments Service at NMW has now been communicated in the Dear IP issue 82 November 2018 to insolvency practitioners.
As well as agreeing a sensible approach to the construction of directors redundancy claims based on the ERA1996 and subsequent case law, RCUK also established a new working process with the Redundancy Payments Service which involves providing all the documents and records requested to allow the Redundancy Payments Service to assess an application. Exactly what documents and records were required were formalised in the full audit process.
On every claim RCUK submit on behalf of a director all supporting documents and records are submitted when the RP3 is submitted. No claim will be paid without them.
Before finalising a claim before submission RCUK always inform the insolvency practitioner exactly what we intend to claim on behalf of the directors and we share with the insolvency practitioner all supporting documents and records to be submitted to the Redundancy Payments Service.
By sharing this information we can ensure that you will have the appropriate books and records to assist you to comply with SIP2 and submit your RP14/14A’s.
If you would like to know more about how RCUK work please feel free to contact Gary Addison on 01625 462587 or contact RCUK at firstname.lastname@example.org