This Order, effective June 1st, 2025, revokes the Institute of Chartered Accountants in Ireland's recognition as a professional body for insolvency practitioners.
The revocation is a direct result of a request from the Institute itself and aligns with Section 391N of the Insolvency Act 1986.
The Secretary of State confirmed the appropriateness of the action after consideration of all relevant factors.
A public notice detailing the effective date and reasons has been published.
Arguments For
The Institute of Chartered Accountants in Ireland (CAI) directly requested the revocation of its recognition.
Revocation aligns with the CAI's wishes and avoids potential complications or disputes.
The Secretary of State deemed the revocation appropriate given the circumstances.
Section 391N(1) of the Insolvency Act 1986 provides the legal basis for this action.
Arguments Against
Removal of CAI might reduce the number of qualified insolvency practitioners, potentially impacting efficiency.
The process might not be fully transparent to affected parties.
Loss of recognition might damage the reputation or standing of CAI.
Alternative solutions, such as modifications to CAI's structure or oversight, were not explored.
- Citation, commencement, effect and extent (1) This Order may be cited as the Insolvency Practitioners (Recognised Professional Bodies) (Revocation of Recognition of the Institute of Chartered Accountants in Ireland) Order 2025. (2) This Order comes into force on 1st June 2025. (3) This Order has effect from 1st June 2025. (4) This Order extends to England and Wales and Scotland.
This section establishes the order's formal title, effective date, and geographic applicability.
The order's name clearly identifies its purpose.
It comes into effect on June 1st, 2025, and applies to England, Wales, and Scotland.
- Revocation of recognition In the Schedule to the Insolvency Practitioners (Recognised Professional Bodies) Order 1986 omit “The Institute of Chartered Accountants in Ireland”.
This section specifies the core action of the order: removing the Institute of Chartered Accountants in Ireland from the list of recognized professional bodies within the 1986 Order.
This effectively revokes their recognition.
EXPLANATORY NOTE (This note is not part of the Order) The bodies specified in the Schedule to the Insolvency Practitioners (Recognised Professional Bodies) Order 1986 (“the 1986 Order”) are recognised professional bodies for the purposes of section 391 of the Insolvency Act 1986 (“the 1986 Act”). Recognised professional bodies are capable of providing their insolvency specialist members with full or partial authorisation to act as insolvency practitioners. The Institute of Chartered Accountants in Ireland (otherwise known as “Chartered Accountants Ireland (“CAI”)”) has requested that its recognition as a recognised professional body be revoked. This Order amends the 1986 Order, by omitting the Institute of Chartered Accountants in Ireland from the Schedule to it, with effect from 1st June 2025. From this date the Institute of Chartered Accountants in Ireland will cease to be a recognised professional body. A notice by the Secretary of State, specifying the date from which this Order takes effect and the reasons for it, has been published on 22nd April 2025 as required by section 391N(3) of the 1986 Act and is available on-line at https://www.gov.uk/government/news/institute-of-chartered-accountants-in-ireland-application-to-cease-as-a-recognised-professional-body-for-insolvency-practitioners. A hard copy of the notice is available from The Insolvency Service, Floor 16, 1 Westfield Avenue, London E20 1HZ. A full impact assessment has not been produced for this instrument as no, or no significant, impact on the private, voluntary or public sector is foreseen.
The explanatory note provides background context.
It explains the significance of being a recognized professional body under the 1986 Act, highlighting the authorization to act as insolvency practitioners.
The note confirms that the Institute requested the revocation and details the publication of a notice about the order.
It also states that a full impact assessment was not deemed necessary.