CASE REVIEW CHECKLIST INDIVIDUAL VOLUNTARY ARRANGEMENTS POST APRIL 2010

CASE REVIEW CHECKLIST
INDIVIDUAL VOLUNTARY ARRANGEMENTS POST APRIL 2010
Practitioner’s name
Case name
Date of appointment
Date of closure
Reviewed by
Review date
1
Pre-appointment issues
Has appropriate customer due diligence been undertaken and documentation
kept updated?
Yes/No
The Money Laundering Regulations 2007
Has consideration been given to the implications of the Bribery Act 2010?
Yes/No/N/A
Bribery Act 2010 effective from 1 July 2011
Have all of the requirements of SIP 3 been met?
Yes/No
In particular, have the following requirements of the SIP been met?
 Has the member considered the need for separate representation of any third
parties who intend to inject funds or are otherwise adversely affected by the
VA?
Yes/No/N/A
 If there is a possibility that a VA may adversely affect a spouse or co-owner
or other occupier of a dwelling house or other property, has that potentially
affected party been advised to take independent advice?
Yes/No/N/A
 Has the member offered to meet the debtor?
 If the VA involves a trading individual, has a meeting in person been
conducted?
 Has a full and contemporaneous file note of all matters discussed been sent
to the debtor or the advice confirmed in full in writing?
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Yes/No
Yes/No/N/A
Yes/No
 Has the debtor been given the booklet, Is a voluntary arrangement right for
me? or (from 20 June 2011) the Insolvency Service publication, In debt –
dealing with your creditors?
Yes/No
 Has the member sent the debtor a letter of engagement?
Yes/No
Has the debtor been made aware of the firm’s complaints-handling procedure in
writing, at or immediately after the point of sale?
Consumer Credit Act 2006 effective from 6 April 2007 if the firm has its own Consumer Credit Licence.
Yes/No/N/A
Otherwise the firm should inform clients of the principal in the firm to whom they can complain and of their right
to complain to the ICAEW if not satisfied with the firm’s explanation. Complaints about an IP’s conduct from 5
June 2013 should be made via the IP Complaints Gateway.
Has the member:
 satisfied himself that the value of the assets is appropriately reflected in the
statement of affairs; and
Yes/No
 obtained corroborative evidence of the value of any assets material to the
outcome of the arrangement?
Yes/No/N/A
If a business is to be continued by the debtor, has a business plan been
produced to justify this decision?
Yes/No/N/A
Has the member satisfied himself that the plan has a reasonable chance of
success?
Yes/No/N/A
2
Interim order
Was an interim order obtained?
3
Yes/No
Proposal
If the proposal is stated as being protocol compliant, is it?
Yes/No/N/A
IS/BBA protocol
Has the required verification work been carried out?
Yes/No/N/A
Does the proposal contain all of the terms required by rule 5.3?
Yes/No
Does the proposal comply with the requirements of SIP 3 revised?
Yes/No
Does the proposal include an outcome statement showing the comparative
costs of the arrangement and bankruptcy?
Yes/No
Do the proposal or the nominee’s comments include these SIP 3 disclosures:
 the source of any referrals to the nominee or his firm in relation to the
proposed VA;
Yes/No
 any payments made, or proposed to be made, to the source of such referrals;
Yes/No
 any payments made, or proposed to be made, to the nominee or his firm by
the debtor whether in connection with the proposed VA or otherwise;
Yes/No
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 an estimate of the total fee to be paid to the supervisor together with a
statement of the assumptions made in producing the estimate?
4
Yes/No
Nominee’s report
Does the nominee’s report otherwise comply with the requirements of SIP 3?
If the debtor is an undischarged bankrupt, has the nominee sent to the OR (and
the trustee if any) a copy of the proposal, the nominee’s report and a copy or
summary of the statement of affairs?
Yes/No
Yes/No/N/A
Rule 5.11(6)
If an interim order was obtained, when was the nominee’s report and the
proposal delivered to court?
Date
Two copies to be provided not less than two business days before the interim order ceases to have effect –
Rule 5.11
If an interim order was obtained, when was the interim order extended to?
If in the previous 12 months the debtor has put forward a proposal that has been
rejected, was this mentioned in the nominee’s comments and do the nominee’s
comments explain why it is considered appropriate for the creditors to consider
and vote on the current proposal?
Date
Yes/No/N/A
SIP 3
5
Section 257 meeting
Date of section 257 meeting:
Date
If an interim order has not been obtained, the meeting is to be held no more than 28 days from that on which the nominee
received the document and statement in section 256A(2). If an interim order is in force, the meeting should be held not less
than 14 days from the date on which the nominee’s report is filed in court, nor more than 28 days from when the nominee’s
report is considered by the court – Rule 5.17(1).
Was notice of the meeting sent to creditors at least 14 days before the date
fixed for the meeting?
Yes/No
Rule 5.17(2). SIP 3 notes that the 14-day notice period excludes the day of sending the notice and the day of
the meeting
Has notice of the section 257 meeting been sent to all creditors of whom the
person summoning the meeting is aware?
Yes/No
Section 257(2)
Did the notices state the effect of Rule 5.23 (2) to (4) and were all of the
documents referred to in Rule 5.17 (3A) sent out?
Were creditors told how to find a suitable explanatory note of their rights under
the insolvency legislation?
Yes/No
Yes/No
SIP 9
Was the location of the meeting convenient for creditors?
Rule 5.18(1)
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Yes/No
Were the proxies voted valid?
Yes/No
Have any chairman’s general proxies been used contrary to rules 5.20 and 8.6?
Yes/No
Has the required majority been obtained?
Yes/No
Rule 5.23
Were creditors given details of the minimum time units used and the current
charge out rates, split by grades of staff, of those people who have been or are
likely to be involved in the time costs aspects of the case?
Yes/No
SIP 9 wef 1 November 2011. Previous requirement was to disclose charge out rates for all grades of staff
likely to be involved on the case.
If the proposal has been modified, is there evidence that the debtor has agreed
the modifications?
6
Yes/No
Post appointment formalities
Where there was an interim order and the creditors’ meeting was summoned
pursuant to a report to court under section 256(1)(aa), was the chairman’s report
filed in court within four business days of the section 257 meeting?
Yes/No
Rule 5.27(3)
Was the meeting report issued to creditors as soon as reasonably practicable
after the chairman’s report was filed in court or where there was no interim
order, within four business days of the meeting being held?
Yes/No
Rule 5.27 (4A)
Did the chairman’s report comply with Rule 5.27(2)?
Did the supervisor report approval of the arrangement to the Secretary of State
as soon as reasonably practicable and within 14 days of the report that the
creditors’ meeting approved the VA, was filed in court or sent to creditors?
Yes/No
Yes/No
Rule 5.29
If the debtor is an undischarged bankrupt, was a copy of the report sent to the
OR and any trustee?
Yes/No/N/A
Rule 5.27(4)
7
Ethical considerations
Is there documentary evidence that the administrator considered ethical matters
before he was appointed?
Yes/No
Is any conflict of interest apparent?
Yes/No
8
OFT debt management guidance
Has the officeholder acted in accordance with the OFT’s debt management
guidance?
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Yes/No
9
Bonding
Was a bond obtained by the nominee?
Yes/No
The Insolvency Practitioners (Amendment) Regulations 2002
Was the appointment included on a cover schedule sent to the surety or
cautioner within the period specified in the bond?
Did the nominee and supervisor bonds equal at least the value of the assets
subject to the terms of the arrangement, including the aggregate of any
payments to be made?
Yes/No
Yes/No
Paragraph 5 of schedule 2 to the Insolvency Practitioners Regulations 2005
Was the basis of the bond calculation evident from the file?
Yes/No
If the bond has been increased, was the increase effected before the bond was
exceeded?
Yes/No/N/A
If the case is closed, was the bond released promptly?
Yes/No/N/A
10
Annual reports and accounts
Have reports/accounts been issued to the following in accordance with the timescale in rule
5.31A:
Due in respect of each period of 12 months ending with the anniversary of the commencement of the arrangement and to be
sent within two months of the end of that period
 debtor
Yes/No/N/A
 creditors?
Yes/No/N/A
Do the reports provide a report on the progress and prospects for full
implementation of the arrangement?
Yes/No/N/A
Do reports include an explanation of what has been achieved in the period
under review and how it was achieved, sufficient to enable the progress of the
case to be assessed? Where remuneration is on a time cost basis, did the
officeholder disclose the charge in respect of the period, the time spent and the
average charge out rates (in larger cases split by grades of staff and analysed
by appropriate activity)? If there has been any change in charge out rates
during the period under review, rates should be disclosed by grades of staff,
split by the periods applicable.
Yes/No/N/A
SIP 9 wef 1 November 2011. Previous requirements outlined in paragraph 3.4/ 4.1 of the previous version of
SIP 9.
Did the reports tell creditors how to find a suitable explanatory note of their
rights under the insolvency legislation?
Yes/No
Required to be provided in all reports per SIP 9 wef 1 November 2011
If the fee payable to the supervisor exceeds the estimate provided in the
proposal or the nominee’s comments, has this been reported to creditors in the
next report, and has the additional information in paragraph 8.2 of SIP 3 been
provided?
SIP 3
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Yes/No/N/A
If reports have been delivered electronically, have the recipients consented and
is there proof of sending?
Yes/No/N/A
Rules 12A.7 to 12A.11
If a website has been used to post copies of reports, has the supervisor
complied with rule 12A12 and, specifically, were creditors given details of who to
contact if they wanted a hard copy?
11
Yes/No/N/A
Remuneration and disbursements
Have the nominee and the supervisor’s fees been drawn in accordance with the
terms of the proposal?
Yes/No/N/A
Have any pre-appointment costs in excess of the fixed nominee’s fee been
recovered post appointment?
Yes/No/N/A
If the supervisor’s remuneration is fixed on a time-cost basis, are the fees that
have been drawn in line with the time-costs shown by the firm’s time recording
system?
Yes/No/N/A
If category 2 disbursements have been drawn, has the basis been disclosed to,
and authorised by, those responsible for approving remuneration?
Yes/No/N/A
12
Closing formalities
Date notice of final completion or termination sent to creditors and the debtor
Date
Due within 28 days of final completion. Contents specified in Rule 5.34(2)
Date notice of completion/termination and final report/accounts sent to Secretary
of State and (if there was an interim order) the court.
Date
Due within 28 days of completion of arrangement – Rule 5.34(3A)
Did the final report include an explanation of what has been achieved in the
period under review and how it was achieved, sufficient to enable the progress
of the case to be assessed? Where remuneration is on a time cost basis, did the
officeholder disclose the charge in respect of the period, the time spent and the
average charge out rates (in larger cases split by grades of staff and analysed
by appropriate activity)? If there has been any change in charge out rates during
the period under review, rates should be disclosed by grades of staff, split by the
periods applicable.
SIP 9 wef 1 November 2011. Previous requirements outlined in paragraph 3.4/ 4.1 of the previous version of
SIP 9.
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Yes/No/N/A
13
Case progression and asset realisation
13.1 Compliance with the terms of the arrangement
Note key assets and terms of the arrangement.
If the arrangement is contribution-based, is there evidence that the supervisor
has monitored the receipt of contributions?
Yes/No/N/A
If the arrangement required the supervisor to obtain trading results or income
and expenditure information at specified intervals, is there evidence that he
requested the information, reviewed it and acted on it in accordance with the
terms of the proposal?
Yes/No/N/A
If the proposal required a caution to be registered, were steps taken to do so in
accordance with the timescale in the proposals?
Yes/No/N/A
Have all other obligations been carried out as specified in the proposal?
Yes/No/N/A
If actual events suggest deviation from the terms of the arrangement and the
supervisor has exercised any discretion allowed to him under the terms of the
arrangement, has he explained the circumstances to creditors at the next
available opportunity?
Yes/No/N/A
SIP 3
Have all assets included in the arrangement been dealt with in accordance with
the terms?
Yes/No/N/A
If the terms of the arrangement have been varied after approval, was this done
in accordance with the provisions of the arrangement?
Yes/No/N/A
If there is a fixed duration, and if steps have been taken to extend this, was all
necessary action taken and concluded before the termination date?
Yes/No/N/A
Has consideration been given to the VAT position following the Paymex decision
in June 2011?
Yes/No/N/A
Has the case been adequately progressed?
Yes/No
13.2 Cashiering
Have the firm’s cashiering policies been followed and do the recorded
transactions appear to be a fair summary of the position?
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Yes/No
13.3 Distributions
Give schedule dates and amounts of dividends paid to preferential creditors.
Once it was clear that there would be funds for creditors, were steps taken to
agree the preferential claims promptly?
Yes/No/N/A
Was there any delay in finalising claims?
Yes/No/N/A
Once claims were agreed, was a dividend paid promptly?
Yes/No/N/A
Have claims been correctly calculated?
Yes/No/N/A
Review a sample of claims
Give schedule dates and amounts of distributions to unsecured creditors.
Once it was clear that there would be funds for creditors, were steps taken to
agree the unsecured claims promptly?
Have claims been correctly calculated?
Yes/No/N/A
Yes/No/N/A
Review a sample of claims
14
File reviews
Have reviews been carried out in accordance with the firm’s policy?
Yes/No
Note dates of reviews.
Dates
Have issues identified on reviews been followed up within a reasonable
timescale?
Yes/No
Is there evidence that the appointee has seen the completed reviews?
Yes/No
15
Other issues
Is the IP record complete and correct?
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Yes/No