Chartered Accountants Ireland welcomes the fact that the Insolvency
Service of Ireland has begun to accept applications as of yesterday (9th Sept) from individuals who want to re-structure their debts.
While some concerns have been voiced that the numbers of approved PIPs are starting from a low base –
37 approved PIPs covering 16 counties – the Institute expects this number to grow this month. Over 200 finance professionals have so far passed the Institute’s ‘Certificate in Personal Insolvency’, and out of the 37 registered PIPs currently on the ISI website, 14 have completed the course with Chartered Accountants Ireland.
The Institute has run three such courses (two in Dublin, one in Cork) and will offer a fourth course in Dublin later this week. Most professionals who have registered as PIPs to date have come from an accountancy background.
Brendan Lenihan FCA, President of Chartered Accountants Ireland said: “Any delay in our members or others registering with the ISI may be attributed to a level of uncertainty in the new regime, and uncertainty in the number of people in debt who may engage in what will be a lengthy and detailed process. In addition, we note that practitioners planning to offer insolvency advice will need to make certain provisions, for example increasing their levels of Professional Indemnity Insurance cover.”
Mr Lenihan added: “While the Institute’s members have made a significant contribution so far, the regulatory responsibilities and licensing of qualified advisors resides with the Insolvency Service, and any shortfall of PIPs around the country will ultimately need to be addressed by that body.”
The Institute notes that the future success of the new insolvency regime will be measured by the extent to which financial institutions positively engage with applicants who want to restructure their outstanding debts.
While some concerns have been voiced that the numbers of approved PIPs are starting from a low base –
37 approved PIPs covering 16 counties – the Institute expects this number to grow this month. Over 200 finance professionals have so far passed the Institute’s ‘Certificate in Personal Insolvency’, and out of the 37 registered PIPs currently on the ISI website, 14 have completed the course with Chartered Accountants Ireland.
The Institute has run three such courses (two in Dublin, one in Cork) and will offer a fourth course in Dublin later this week. Most professionals who have registered as PIPs to date have come from an accountancy background.
Brendan Lenihan FCA, President of Chartered Accountants Ireland said: “Any delay in our members or others registering with the ISI may be attributed to a level of uncertainty in the new regime, and uncertainty in the number of people in debt who may engage in what will be a lengthy and detailed process. In addition, we note that practitioners planning to offer insolvency advice will need to make certain provisions, for example increasing their levels of Professional Indemnity Insurance cover.”
Mr Lenihan added: “While the Institute’s members have made a significant contribution so far, the regulatory responsibilities and licensing of qualified advisors resides with the Insolvency Service, and any shortfall of PIPs around the country will ultimately need to be addressed by that body.”
The Institute notes that the future success of the new insolvency regime will be measured by the extent to which financial institutions positively engage with applicants who want to restructure their outstanding debts.
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