SRA Handbook

Liquidators, trustees in bankruptcy, Court of Protection deputies and trustees of occupational pension schemes

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Rule 8: Liquidators, trustees in bankruptcy, Court of Protection deputies and trustees of occupational pension schemes

8.1

If in the course of practice you act as:

(a)

a liquidator,

(b)

a trustee in bankruptcy,

(c)

a Court of Protection deputy, or

(d)

a trustee of an occupational pension scheme which is subject to section 47(1)(a) of the Pensions Act 1995 (appointment of an auditor) and section 49(1) (separate bank account) and regulations under section 49(2)(b) (books and records),

you must comply with:

(i)

the appropriate statutory rules or regulations;

(ii)

the Principles referred to, and the underlying principles set out, in rule 1; and

(iii)

the requirements of rule 8.2 to 8.4 below;

and will then be deemed to have satisfactorily complied with the Accounts Rules.

8.2

In respect of any records kept under the appropriate statutory rules, there must also be compliance with:

(a)

rule 29.15 - bills and notifications of costs;

(b)

rule 29.17(c) - retention of records;

(c)

rule 29.20 - centrally kept records;

(d)

rule 31 - production of documents, information and explanations; and

(e)

rule 39.1(l) and (p) - reporting accountant to check compliance.

8.3

If a liquidator or trustee in bankruptcy uses any of the firm's client accounts for holding money pending transfer to the Insolvency Services Account or to a local bank account authorised by the Secretary of State, he or she must comply with the Accounts Rules in all respects whilst the money is held in the client account.

8.4

If the appropriate statutory rules or regulations do not govern the holding or receipt of client money in a particular situation (for example, money below a certain limit), you must comply with the Accounts Rules in all respects in relation to that money.

Guidance notes

(i)

The Insolvency Regulations 1994 (S.I. 1994 no. 2507) regulate liquidators and trustees in bankruptcy.

(ii)

The Court of Protection Rules 2007 (S.I. 2007 no. 1744 (L.12)) regulate Court of Protection deputies.

(iii)

Money held or received by liquidators, trustees in bankruptcy, Court of Protection deputies and trustees of occupational pension schemes is client money but, because of the statutory rules and rule 8.1, it will not normally be kept in a client account. If for any reason it is held in a client account, the Accounts Rules apply to that money for the time it is so held (see rule 8.3 and 8.4).