Second Review of the Insolvency (England and Wales) Rules 2016 and the Insolvency (Scotland) (Company Voluntary Arrangements and Administration) Rules 2018 – Public Consultation
The review considers whether the Rules are fit for purpose, how to reduce burdens, potential changes to address technical issues, and futureproofing the Rules.
The UK insolvency framework is well established and well regarded internationally. The Insolvency (England and Wales) Rules 2016 and the Insolvency (Scotland) (Company Voluntary Arrangements and Administration) Rules 2018 ‘the Rules’ provide the detailed procedures for the conduct of insolvency proceedings, for example by setting out the duties of office-holders, creditor and debtor rights and obligations, the role of courts, the orderly collection and distribution of assets, and the timeframe to complete proceedings.
Section 1 of this consultation focuses on the statutory elements of the post-implementation review ‘PIR’. This includes whether the Rules remain fit for purpose, and whether there are opportunities to reduce administrative and regulatory burdens.
Section 2 considers a range of potential future changes to the Rules. The topics build on stakeholders’ responses from the first PIR in 2022, along with research and feedback received in the interim period. The government is not consulting on preferred options but seeking to gather a wide range of opinions and potential solutions that may improve the functioning of the Rules for the benefit of stakeholders. Consultation responses will help inform the government’s position on what change, if any, is needed.
Section 3 examines how to future-proof the Rules. It is a forward look to consider how the Rules might need to adapt to accommodate emerging issues to ensure continued effectiveness in a rapidly changing world. It covers advancements in technology and artificial intelligence, as well as digital assets and cryptocurrencies.
All consultation responses will be carefully reviewed before any decisions are made on whether to proceed with changes to the Rules. The government’s response to the consultation will be in the form of a PIR report that will be laid in Parliament and published on legislation.gov.uk. Rule changes identified as necessary in the report will be implemented via secondary legislation.