Alan Shatter (Dublin South, Fine Gael) | Oireachtas source

These amendments make provision for certain obligations to which personal insolvency practitioners will be subject under Part 5. Chapter 2, comprising sections 158 to 160, sets out a number of general obligations that will apply to personal insolvency practitioners. Amendment No. 147 proposes the insertion of section 158. This section imposes an obligation on personal insolvency practitioners to keep records of their activities with debtors for a period of not less than six years after the completion of the activity to which the record relates. The types of records to be retained will be prescribed by legislation.

Amendment No. 148 proposes the insertion of section 159. Under this section, the personal insolvency practitioner will be required to have a policy of professional indemnity insurance which meets requirements that may be prescribed in regulations made by the insolvency service.

Amendment No. 149 proposes the insertion of section 160 to provide that a personal insolvency practitioners will not be permitted to charge fees or costs which are not incurred either in accordance with regulations made under section 149 or a debt settlement arrangement. A personal insolvency arrangement comes into effect in accordance with the terms of the relevant arrangement.

Chapter 3, comprising sections 161 to 163, contains important provisions dealing with accounts and related matters. Amendment No. 150 proposes the insertion of section 161. This section empowers the insolvency service to make regulations regarding bank accounts which may be opened by personal insolvency practitioners for the keeping of moneys received from debtors; the rights, duties and responsibilities of a personal insolvency practitioner in respect of moneys received from debtors; the accounting records which must be maintained and also verification and enforcement of compliance with regulations. In making regulations under this section, the insolvency service must have regard to the need to protect debtors and creditors who are or may become parties to debt settlement arrangements or personal insolvency arrangements.

Amendment No. 151 proposes the insertion of section 162 to provide that the insolvency service may, where necessary for the protection of debtors and creditors who are parties to a debt settlement arrangement or personal insolvency arrangement in relation to which a personal insolvency practitioner is or has been acting, apply to the High Court for certain orders in relation to the banking accounts kept by the personal insolvency practitioner in his or her company as such or in relation to the assets of the personal insolvency practitioner.

Amendment No. 152 proposes the insertion of section 162 which aims to address situations where a personal insolvency practitioner is no longer authorised to carry on practice as such and the insolvency service is of the opinion that the person has not made adequate arrangements for handing over documents relating to his or her practice as a personal insolvency practitioner. In such a case, the insolvency service may issue a notice requiring the production of the documents to it. Where the person fails to comply with such a requirement, the service may apply to the Circuit Court for an order requiring compliance with the requirement within a specified period of time.