New Ethical Code

Question 1

Ethical code

Answer 1

Integrity
Professional competence and due care
Professional behaviour
Confidentiality
Objectivity

Question 2

Integrity - new code of ethics

Answer 2

• An IP must not be associated with reports / returns or communications where may contain:-
  
  • false / misleading info
  • reckless info
  • omissions / obscurities leading to misleading info
• IP must disassociate from these docs

Question 3

Professional Competence and Due Care - new code of ethics

Answer 3

• Employees have appropriate training and supervision
• If limitations in IP services / activities clients to be told

Question 4

Confidentiality - new code of ethics

Answer 4

• IP should always report fully and transparently
• how a reasonable third party would consider appropriate
• be mindful of inadvertent disclosure of info
• maintain confidentiality within firm or by firm
• don’t use info for personal advantage
• ensure employees / suppliers are aware of duty of confidentiality

There are times when confidential info has to be disclosed i.e. creditor reports, CDDA or legal proceedings

Question 5

Professional Behaviour - new code of ethics

Answer 5

Comply with laws and regs

Do not impair insolvency profession

Question 6

Code of ethics new - what is the reasonable and informed third party test?

Answer 6

Would the same conclusions be reached by another party weighing same facts and circumstances as IP.

Doesn’t have to be another IP

Question 7

New code of ethics - what steps can be taken when identifying a threat?

Answer 7

• Eliminate the circumstances e.g. interests or relationships
• Implement safeguards to bring to an acceptable level
• Decline / End appointment

Question 8

New code of Ethics - specialist advice and services

Answer 8

• Evaluate whether advice or work is warranted
• Should reflect best value and service
• Arrangements reviewed periodically
• Ethical checklist 5 (documented reasoning)

Question 9

New code of ethics - agencies and referrals

Answer 9

• Consider fitness if third party to whom referral is proposed
• No financial arrangements with suppliers which would prejudice objectivity
• No exclusivity
• Do not make referral where better alternative
• connections to third parties should be disclosed

Question 10

New code of ethics - referral fees and commissions

Answer 10

• no commissions or referral fees for introductions of insolvency appointment
• consultancy which may lead to an appointment - reduce threats created by fees to an acceptable level
• full disclosure to creditors
• after appointment, any such fees paid into the estate
• any preferential contractual terms passed to estate

Question 11

New code of ethics - advertising, marketing, promotions

Answer 11

• don’t bring profession into disrepute
• be honest and truthful
• don’t exaggerate services, qualifications or experience
• not unfair or misleading
• avoids disparaging statements
• legal, decent, honest and truthful

Consider the above when considering an appointment on the back of it

• Third parties should also consider the above

Question 12

New code of ethics - assets

Answer 12

Don’t buy directly or indirectly knowingly

Includes employees and family

Question 13

New code of ethics - IP as employee

Answer 13

The relationship of IP has no bearing in their compliance to ethics on cases

Question 14

How might a Trustee deal with a lease

Answer 14

• Sell
• Disclaim if onerous
• Assign with consent of landlord (they cannot unreasonably withhold)
• Forfeiture if in terms of lease happens on BO
• Voluntary surrender