News 2023

In February 2023 the UK government updated its guidance on supplying professional and business services to a person connected with Russia. Readers will recall that during 2022 legislation was passed outlawing the direct or indirect provision of accounting services and audit services to a person connected with Russia. The guidance outlines the two exceptions to the ban on audit services and if an audit firm signed an audit engagement letter prior to 16 December 2022, the firm has until 31 May 2023 to complete the audit. However, the firm must notify the Secretary of State that they will be completing the work by 15 March 2023. While the guidance has a caveat that individual firms must take their own legal advice as to whether their activity falls within scope of the sanctions it also gives guidance on some common audit scenarios. This information is provided as resources and information only and nothing in these pages purports to provide professional advice or definitive legal interpretation(s) or opinion(s) on the applicable legislation or legal or other matters referred to in the pages. If the reader is in doubt on any matter in this complex area further legal or other advice must be obtained. While every reasonable care has been taken by the Institute in the preparation of these pages, we do not guarantee the accuracy or veracity of any resource, guidance, information or opinion, or the appropriateness, suitability or applicability of any practice or procedure contained therein. The Institute is not responsible for any errors or omissions or for the results obtained from the use of the resources or information contained in these pages.  

Regulatory Fee Invoices  The Regulatory fee invoices for 2023 are available online at the Myaccount portal of the website to view, print and pay.  Remittance should be made by 31 March 2023.  If you prefer a copy invoice to be emailed, please email Sandra.smiley@charteredaccountants.ie quoting your individual/firm ID.   Need assistance?   Please email Sandra.smiley@charteredaccountants.ie with your name and member/firm ID along with the query or changes required.   We will issue a revised invoice if this is appropriate. 

A reminder to GB/NI Insolvency Practitioners that revised SIP 3.1 - IVAs is now effective from 1 March 2023. We previously highlighted these changes and a summary is available here.

On 23 February 2023 the Council of the European adopted its tenth package of sanctions against Russia. You can read more details on the tenth package on the European Commission website here a press release on the tenth package here and  Questions and Answers: tenth package of restrictive measures against Russia here.

The Minister for Justice, with the consent of the Minister for Finance, has issued Guidelines under section 37(12) of the Criminal Justice (Money Laundering and Terrorist Financing) Act 2010 (as amended) clarifying those functions in the State that may be considered to be prominent public functions for the purposes of the Act. This will assist firms to identify domestic Politically Exposed Persons (PEPs) when conducting their risk assessment.

The National Crime Agency (UK) has published the latest edition of SARs in Action. This edition explains how SARs have helped to identify victims that require safeguarding, seize criminal funds and assets and support multiple investigations.

Introduction Under the Joint Insolvency Committee’s (JIC’s) strategic work plan Statements of Insolvency Practice (SIPs) are subject to periodic review in order to ensure they remain relevant to changing legislation and market conditions. Following consultations with the profession and other stakeholders, including the Insolvency Service, HMRC and major creditor representatives, a revised version of SIP 3.1 – Individual Voluntary Arrangements, has now been approved by the JIC and the Recognised Professional Bodies for implementation with effect from 1 March 2023. Summary of Changes The principal changes in the revised SIP 3.1 relate to the degree of emphasis on the IP’s responsibility to ensure that the debtor has received suitable advice prior to entering an IVA and during its implementation. This includes ensuring that the debtor is aware of all potential debt relief solutions available and that they are provided with adequate time to think about the consequences and the options available before instructing an IVA to be drawn up. Where the debtor comes to the IP through a referrer, the IP should make themselves aware of the nature and extent of the advice previously given to the debtor and collect evidence of such advice. The IP should ascertain whether referrers that have advised the debtor are FCA authorised or exempt for debt advice purposes and document their status. If there are any shortcomings in the advice the IP is required to provide the appropriate advice themselves. The revised SIP 3.1 incudes a greater emphasis on documenting the process, including, where appropriate, advice calls, and on providing information to creditors that is more extensive and useful to them than before. There is also a focus on providing tailored information and advice relevant to the debtor’s particular circumstances rather than relying on generic explanations and standardised texts. The changes between the revised version and the current (2014) version of SIP 3.1 are set out in this comparison document. Publication and Implementation The revised SIP 3.1 will apply to IVAs where the Nominee is appointed on or after 1 March 2023. The revised SIP 3.1 applies in Northern Ireland, England and Wales. The revised SIP 3.1 is available here.