(a) the body has requested that an order be made under this
subsection, and

(b) the Secretary of State is satisfied that it is appropriate in all the
circumstances of the case to revoke the body’s recognition
5under section 391.

(2) An order under section 391(1) in relation to a recognised professional
body may be revoked by the Secretary of State by an order which also
declares the body concerned to be a recognised professional body
which is capable of providing its insolvency specialist members with
10partial authorisation only of the kind specified in the order (see section
390A(1)) if—

(a) the body has requested that an order be made under this
subsection, and

(b) the Secretary of State is satisfied that it is appropriate in all the
15circumstances of the case for the body to be declared to be a
recognised professional body which is capable of providing its
insolvency specialist members with partial authorisation only
of the kind specified in the order.

(3) Where the Secretary of State decides to make an order under this
20section the Secretary of State must publish a notice specifying—

(a) when the order is to take effect, and

(b) the Secretary of State’s reasons for making the order.

(4) An order under this section—

(a) has effect from such date as is specified in the order, and

(b) 25may make provision for members of the body in question to
continue to be treated as fully or partially authorised (as the
case may be) to act as insolvency practitioners for a specified
period after the order takes effect.

(5) An order under subsection (2) has effect as if it were an order made
30under section 391(2).”

(2) In section 415A of the Insolvency Act 1986 (fees orders: general), after
subsection (4) insert—

“(5) Section 391M applies for the purposes of an order under subsection
(1)(b) as it applies for the purposes of a revocation order made under
35section 391L.”

141 Court sanction of insolvency practitioners in public interest cases

After section 391N of the Insolvency Act 1986 (inserted by section 140) insert—

“Court sanction of insolvency practitioners in public interest cases

391O Direct sanctions orders

(1) For the purposes of this Part a “direct sanctions order” is an order made
40by the court against a person who is acting as an insolvency practitioner
which—

(a) declares that the person is no longer authorised (whether fully
or partially) to act as an insolvency practitioner;

(b) declares that the person is no longer fully authorised to act as an
insolvency practitioner but remains partially authorised to act
as such either in relation to companies or individuals, as
specified in the order;

(c) 5declares that the person’s authorisation to act as an insolvency
practitioner is suspended for the period specified in the order or
until such time as the requirements so specified are complied
with;

(d) requires the person to comply with such other requirements as
10may be specified in the order while acting as an insolvency
practitioner;

(e) requires the person to make such contribution as may be
specified in the order to one or more creditors of a company,
individual or insolvent partnership in relation to which the
15person is acting or has acted as an insolvency practitioner.

(2) Where the court makes a direct sanctions order, the relevant recognised
professional body must take all necessary steps to give effect to the
order.

(3) A direct sanctions order must not be made against a person whose
20authorisation to act as an insolvency practitioner was granted by the
Department of Enterprise, Trade and Investment in Northern Ireland
(see section 390A(2)(b)).

(4) A direct sanctions order must not specify a contribution as mentioned
in subsection (1)(e) which is more than the remuneration that the
25person has received or will receive in respect of acting as an insolvency
practitioner in the case.

(5) In this section and section 391P—

• “the court” means the High Court or, in Scotland, the Court of
  Session;

• 30“relevant recognised professional body”, in relation to a person
  who is acting as an insolvency practitioner, means the
  recognised professional body by virtue of which the person is
  authorised so to act.

391P Application for, and power to make, direct sanctions order

(1) 35The Secretary of State may apply to the court for a direct sanctions
order to be made against a person if it appears to the Secretary of State
that it would be in the public interest for the order to be made.

(2) The Secretary of State must send a copy of the application to the
relevant recognised professional body.

(3) 40The court may make a direct sanctions order against a person where, on
an application under this section, the court is satisfied that condition 1
and at least one of conditions 2, 3, 4 and 5 are met in relation to the
person.

(4) The conditions are set out in section 391Q.

(5) 45In deciding whether to make a direct sanctions order against a person
the court must have regard to the extent to which—

(a) the relevant recognised professional body has taken action
against the person in respect of the failure mentioned in
condition 1, and

(b) that action is sufficient to address the failure.

391Q 5 Direct sanctions order: conditions

(1) Condition 1 is that the person, in acting as an insolvency practitioner or
in connection with any appointment as such, has failed to comply
with—

(a) a requirement imposed by the rules of the relevant recognised
10professional body;

(b) any standards, or code of ethics, for the insolvency-practitioner
profession adopted from time to time by the relevant
recognised professional body.

(2) Condition 2 is that the person—

(a) 15is not a fit and proper person to act as an insolvency
practitioner;

(b) is a fit and proper person to act as an insolvency practitioner
only in relation to companies, but the person’s authorisation is
not so limited; or

(c) 20is a fit and proper person to act as an insolvency practitioner
only in relation to individuals, but the person’s authorisation is
not so limited.

(3) Condition 3 is that it is appropriate for the person’s authorisation to act
as an insolvency practitioner to be suspended for a period or until one
25or more requirements are complied with.

(4) Condition 4 is that it is appropriate to impose other restrictions on the
person acting as an insolvency practitioner.

(5) Condition 5 is that loss has been suffered as a result of the failure
mentioned in condition 1 by one or more creditors of a company,
30individual or insolvent partnership in relation to which the person is
acting or has acted as an insolvency practitioner.

(6) In this section “relevant recognised professional body” has the same
meaning as in section 391O.

391R Direct sanctions direction instead of order

(1) 35The Secretary of State may give a direction (a “direct sanctions
direction”) in relation to a person acting as an insolvency practitioner to
the relevant recognised professional body (instead of applying, or
continuing with an application, for a direct sanctions order against the
person) if the Secretary of State is satisfied that—

(a) 40condition 1 and at least one of conditions 2, 3, 4 and 5 are met in
relation to the person (see section 391Q), and

(b) it is in the public interest for the direction to be given.

(2) But the Secretary of State may not give a direct sanctions direction in
relation to a person without that person’s consent.

(3) 45A direct sanctions direction may require the relevant recognised
professional body to take all necessary steps to secure that—

(a) the person is no longer authorised (whether fully or partially) to
act as an insolvency practitioner;

(b) the person is no longer fully authorised to act as an insolvency
practitioner but remains partially authorised to act as such
5either in relation to companies or individuals, as specified in the
direction;

(c) the person’s authorisation to act as an insolvency practitioner is
suspended for the period specified in the direction or until such
time as the requirements so specified are complied with;

(d) 10the person must comply with such other requirements as may
be specified in the direction while acting as an insolvency
practitioner;

(e) the person makes such contribution as may be specified in the
direction to one or more creditors of a company, individual or
15insolvent partnership in relation to which the person is acting or
has acted as an insolvency practitioner.

(4) A direct sanctions direction must not be given in relation to a person
whose authorisation to act as an insolvency practitioner was granted by
the Department of Enterprise, Trade and Investment in Northern
20Ireland (see section 390A(2)(b)).

(5) A direct sanctions direction must not specify a contribution as
mentioned in subsection (3)(e) which is more than the remuneration
that the person has received or will receive in respect of acting as an
insolvency practitioner in the case.

(6) 25In this section “relevant recognised professional body” has the same
meaning as in section 391O.”

142 Power for Secretary of State to obtain information

After section 391R of the Insolvency Act 1986 (inserted by section 141) insert—

“General

391S Power for Secretary of State to obtain information

(1) 30A person mentioned in subsection (2) must give the Secretary of State
such information as the Secretary of State may by notice in writing
require for the exercise of the Secretary of State’s functions under this
Part.

(2) Those persons are—

(a) 35a recognised professional body;

(b) any individual who is or has been authorised under section
390A to act as an insolvency practitioner;

(c) any person who is connected to such an individual.

(3) A person is connected to an individual who is or has been authorised
40to act as an insolvency practitioner if, at any time during the
authorisation—

(a) the person was an employee of the individual;

(b) the person acted on behalf of the individual in any other way;

(c) the person employed the individual;

(d) the person was a fellow employee of the individual’s employer;

(e) in a case where the individual was employed by a firm,
partnership or company, the person was a member of the firm
or partnership or (as the case may be) a director of the company.

(4) 5In imposing a requirement under subsection (1) the Secretary of State
may specify—

(a) the time period within which the information in question is to
be given, and

(b) the manner in which it is to be verified.”

143 10Compliance orders

After section 391S of the Insolvency Act 1986 (inserted by section 142) insert—

“391T Compliance orders

(1) If at any time it appears to the Secretary of State that—

(a) a recognised professional body has failed to comply with a
15requirement imposed on it by or by virtue of this Part, or

(b) any other person has failed to comply with a requirement
imposed on the person by virtue of section 391S,

the Secretary of State may make an application to the court.

(2) If, on an application under this section, the court decides that the body
20or other person has failed to comply with the requirement in question,
it may order the body or person to take such steps as the court considers
will secure that the requirement is complied with.

(3) In this section, “the court” means the High Court or, in Scotland, the
Court of Session.”

25Power to establish single regulator of insolvency practitioners

144 Power to establish single regulator of insolvency practitioners

(1) The Secretary of State may by regulations designate a body for the purposes
of—

(a) authorising persons to act as insolvency practitioners, and

(b) 30regulating persons acting as such.

(2) The designated body may be either—

(a) a body corporate established by the regulations, or

(b) a body (whether a body corporate or an unincorporated association)
already in existence when the regulations are made (an “existing
35body”).

(3) The regulations may, in particular, confer the following functions on the
designated body—

(a) establishing criteria for determining whether a person is a fit and
proper person to act as an insolvency practitioner;

(b) 40establishing the requirements as to education, practical training and
experience which a person must meet in order to act as an insolvency
practitioner;

(c) establishing and maintaining a system for providing full authorisation
or partial authorisation to persons who meet those criteria and
requirements;

(d) imposing technical standards for persons so authorised and enforcing
5compliance with those standards;

(e) imposing professional and ethical standards for persons so authorised
and enforcing compliance with those standards;

(f) monitoring the performance and conduct of persons so authorised;

(g) investigating complaints made against, and other matters concerning
10the performance or conduct of, persons so authorised.

(4) The regulations may require the designated body, in discharging regulatory
functions, so far as is reasonably practicable, to act in a way—

(a) which is compatible with the regulatory objectives, and

(b) which the body considers most appropriate for the purpose of meeting
15those objectives.

(5) Provision made under subsection (3)(d) or (3)(e) for the enforcement of the
standards concerned may include provision enabling the designated body to
impose a financial penalty on a person who is or has been authorised to act as
an insolvency practitioner.

(6) 20The regulations may, in particular, include provision for the purpose of
treating a person authorised to act as an insolvency practitioner by virtue of
being a member of a professional body recognised under section 391 of the
Insolvency Act 1986 immediately before the regulations come into force as
authorised to act as an insolvency practitioner by the body designated by the
25regulations after that time.

(7) Expressions used in this section which are defined for the purposes of Part 13
of the Insolvency Act 1986 have the same meaning in this section as in that Part.

(8) Section 145 makes further provision about regulations under this section which
designate an existing body.

(9) 30Schedule 11 makes supplementary provision in relation to the designation of a
body by regulations under this section.

145 Regulations under section 144: designation of existing body

(1) The Secretary of State may make regulations under section 144 designating an
existing body only if it appears to the Secretary of State that—

(a) 35the body is able and willing to exercise the functions that would be
conferred by the regulations, and

(b) the body has arrangements in place relating to the exercise of those
functions which are such as to be likely to ensure that the conditions in
subsection (2) are met.

(2) 40The conditions are—

(a) that the functions in question will be exercised effectively, and

(b) where the regulations are to contain any requirements or other
provisions prescribed under subsection (3), that those functions will be
exercised in accordance with any such requirements or provisions.

(3) Regulations which designate an existing body may contain such requirements
or other provisions relating to the exercise of the functions by the designated
body as appear to the Secretary of State to be appropriate.

146 Regulations under section 144: timing and supplementary

(1) 5Section 144 and, accordingly, section 145 and subsections (3) and (4) below
expire at the end of the relevant period unless the power conferred by
subsection (1) of section 144 is exercised before the end of that period.

(2) The “relevant period” is the period of 7 years beginning with the day on which
section 144 comes into force.

(3) 10Regulations under section 144 are subject to affirmative resolution procedure.

(4) If a draft of a statutory instrument containing regulations under section 144
would, apart from this subsection, be treated for the purposes of the Standing
Orders of either House of Parliament as a hybrid instrument, it is to proceed in
that House as if it were not a hybrid instrument

15Part 11 Employment

Whistleblowing

147 Protected disclosures: reporting requirements

(1) The Employment Rights Act 1996 is amended as follows.

(2) 20In Part 4A (protected disclosures), after section 43F insert—

“43FA Prescribed persons: duty to report on disclosures of information

(1) The Secretary of State may make regulations requiring a person
prescribed for the purposes of section 43F to produce an annual report
on disclosures of information made to the person by workers.

(2) 25The regulations must set out the matters that are to be covered in a
report, but must not require a report to provide detail that would
enable either of the following to be identified—

(a) a worker who has made a disclosure;

(b) an employer or other person in respect of whom a disclosure
30has been made.

(3) The regulations must make provision about the publication of a report,
and such provision may include (but is not limited to) any of the
following requirements—

(a) to send the report to the Secretary of State for laying before
35Parliament;

(b) to include the report in another report or in information
required to be published by the prescribed person;

(c) to publish the report on a website.

(4) The regulations may make provision about the time period within
40which a report must be produced and published.

(5) Regulations under subsections (2) to (4) may make different provision
for different prescribed persons.”

(3) In section 236 (orders and regulations)—

(a) in subsection (3), before “43K(4)” insert “43FA (but see subsection
5(3A)),”;

(b) after subsection (3) insert—

“(3A) Subsection (3) does not apply to regulations under section 43FA
that contain only the provision mentioned in section 43FA(2),
(3) or (4).”

10Employment tribunals: failure to pay sums

148 Financial penalty for failure to pay sums ordered by employment tribunal etc

(1) The Employment Tribunals Act 1996 is amended as provided in subsections (2)
to (6).

(2) After section 37 insert—

15“ Part 2A Financial penalties for failure to pay sums ordered to be paid or
settlement sums

37A Sums to which financial penalty can relate

(1) This section has effect for the purposes of this Part.

(2) 20“Financial award” means a sum of money ordered by an employment
tribunal, or on a relevant appeal, to be paid by an employer on a claim
involving the employer and a worker, other than a financial penalty
under section 12A.

(3) “Settlement sum” means a sum payable by an employer to a worker
25under the terms of a settlement in respect of which a certificate has been
issued under section 19A(1).

(4) “Relevant sum” means—

(a) a financial award, or

(b) a settlement sum.

(5) 30In subsection (2) “relevant appeal”, in relation to a financial award,
means an appeal against—

(a) the decision on the claim to which it relates,

(b) the making of the financial award,

(c) the amount of the award, or

(d) 35any decision made on an appeal within paragraphs (a) to (c) or
this paragraph.

(6) Sections 37B to 37D apply for the purposes of calculating the unpaid
amount on any day of a relevant sum.

37B Financial award: unpaid amount

(1) In the case of a financial award, the unpaid amount on any day means
the amount outstanding immediately before that day in respect of—

(a) the initial amount of the financial award (see subsection (2)),
5and

(b) subject to subsection (4), interest payable in respect of the
financial award by virtue of section 14.

(2) The initial amount of a financial award is—

(a) in a case to which section 16 applies, the monetary award within
10the meaning of that section (see section 17(3)), and

(b) in any other case, the sum of money ordered to be paid,

adjusted in accordance with subsection (3).

(3) The initial amount of a financial award—

(a) includes (or, if it is the only amount the employer has been
15ordered to pay, comprises) any amount the employer has been
ordered by an employment tribunal to pay in respect of
employment tribunal fees;

(b) does not include—

(i) any other amount payable by virtue of section 13 or 13A;

(ii) 20any amount payable by virtue of section 34;

(iii) any other amount payable in respect of costs or
expenses.

(4) Interest in respect of the financial award included under subsection
(1)(b) in the calculation of the unpaid amount does not include interest
25(if any) in respect of any amount excluded from the initial amount
under subsection (3).

(5) An amount in respect of a financial award is not to be regarded as
outstanding—

(a) when the employer or worker could appeal against—

(i) 30the decision on the claim to which it relates,

(ii) the making of the financial award,

(iii) the amount of the award, or

(iv) any decision made on an appeal within sub-paragraphs
(i) to (iii) or this sub-paragraph,

35but has not done so, or

(b) when the employer or worker has made such an appeal but the
appeal has not been withdrawn or finally determined.

37C Settlement sum: unpaid amount

(1) In the case of a settlement sum, the unpaid amount on any day means
40the amount outstanding immediately before that day in respect of—

(a) the settlement sum, and

(b) interest (if any) calculated in accordance with the settlement
(within the meaning of section 19A).

(2) Subject to section 37D(2) and (3), an amount in respect of a settlement
45sum is not to be regarded as outstanding if the settlement sum is not
recoverable under section 19A(3).

37D Unpaid amount of relevant sum: further provision

(1) Subsections (2) and (3) apply where—

(a) a relevant sum is to be paid by instalments,

(b) any instalment is not paid on or before the day on which it is
5due to be paid, and

(c) a warning notice (see section 37E) is given in consequence of the
failure to pay that instalment (“the unpaid instalment”).

(2) For the purposes of calculating the unpaid amount for—

(a) that warning notice, and

(b) 10any penalty notice given in respect of that warning notice,

any remaining instalments (whether or not yet due) are to be treated as
having been due on the same day as the unpaid instalment.

(3) Accordingly, the amount outstanding in respect of the financial award
or settlement sum is to be taken to be—

(a) 15the aggregate of—

(i) the unpaid instalment, and

(ii) any remaining instalments,

including, in the case of a settlement sum, any amount which is
not recoverable under section 19A(3) by reason only of not
20being due,

(b) interest on those amounts calculated in accordance with section
37B(1)(b) or 37C(1)(b) (and subsection (2)).

(4) Subsections (2) and (3) are not to be taken to affect the time at which any
remaining instalment is due to be paid by the employer.

(5) 25Where a payment by an employer is made, or purported to be made, in
respect of a relevant sum, an enforcement officer may determine
whether, and to what extent, the payment is to be treated as being—

(a) in respect of that relevant sum or instead in respect of some
other amount owed by the employer;

(b) 30in respect of the initial amount or interest on it, in the case of a
payment treated as being in respect of the relevant sum.

37E Warning notice

(1) This section applies where an enforcement officer considers that an
employer who is required to pay a relevant sum has failed—

(a) 35in the case of a relevant sum which is to be paid by instalments,
to pay an instalment on or before the day on which it is due to
be paid, or

(b) in any other case, to pay the relevant sum in full on or before the
day on which it is due to be paid.

(2) 40The officer may give the employer a notice (a “warning notice”) stating
the officer’s intention to impose a financial penalty in respect of the
relevant sum unless before a date specified in the warning notice (“the
specified date”) the employer has paid in full the amount so specified
(“the specified amount”).

45This is subject to subsection (3).