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Clarification on implications of RSA bond wording 6 November 2013

In the headline of an article dated 30th October, Insolvency News claimed that IPs would have to resign from thousands of estates unless rules concerning the wording of Royal & Sun Alliance (RSA) bonds were changed.

The title would like to emphasise that, while it understands that discussion of the bond wording is continuing among IPs, insurers and regulators, it has no reason to suggest there is any practical likelihood of practitioners having to resign from estates as a result of those discussions.

In response to the article in question, the Insolvency Practitioners Association (IPA) issued a statement reassuring members they would not have to take action as a result of the article.

The IPA said it was “in dialogue with the Insolvency Service with a view to ensuring that any technical deficiencies are urgently addressed by the Service together with the relevant bond providers”, but added it did “not consider that there [was] any need for members to take precipitate action” in respect of the RSA bonds.

 

 

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