Valid authorisation for assignment is mandatory for post-31 December 2019 insolvency assignments; prior discipline may preclude further direction.

An insolvency professional may not accept or undertake an assignment after 31 December 2019 unless a valid authorisation for assignment is held on the date of acceptance or commencement, as applicable, under Regulation 7A. The document records that the assignment began after that date and that the professional did not hold a valid authorisation at the relevant time, amounting to a contravention of the Code, the Regulations, the bye-laws, and the duties of reasonable care and diligence. It also notes that prior disciplinary action and a warning had already been issued for the same conduct, so no further direction was issued.

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Issues: Whether the insolvency professional violated the requirement of holding a valid authorisation for assignment before accepting the assignment after 31 December 2019, and whether any further direction was warranted.

Analysis: Regulation 7A of the Insolvency Professional Regulations prohibits an insolvency professional from accepting or undertaking an assignment after 31 December 2019 unless a valid authorisation for assignment is held on the date of acceptance or commencement, as applicable. The order records that the relevant assignment commenced after 31 December 2019 and that the professional did not hold a valid authorisation for assignment at that time. The Code and the Regulations also require adherence to the code of conduct, compliance with the bye-laws of the insolvency professional agency, and performance with reasonable care and diligence. Although the conduct was found to be in contravention, the record also notes that the professional institution had already taken disciplinary action and issued a warning for the same conduct.

Conclusion: The contravention was noted, but no further direction was issued against the insolvency professional.

Ratio Decidendi: An insolvency professional cannot accept or undertake an assignment after 31 December 2019 without a valid authorisation for assignment, though separate disciplinary consequences may be declined where adequate prior action has already been taken.

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