Kubik among first sanctions to be publicised by Insolvency Service

Kubik among first sanctions to be publicised by Insolvency Service

Insolvency Service starts publicising sanctions against IPs with Kubik, Hatch and Paylor first to be highlighted by the government body

UHY HACKER YOUNG partner Peter Kubik is among one of the first insolvency practitioners to have his reprimand published by the Insolvency Service.

Kubik, who previously worked on the high profile administration of Portsmouth Football Club, was issued with a disciplinary consent order on 11 November last year by the Insolvency Practitioners Assocation (IPA) after the former employees of a company complained that he had breached ethical standards.

According to the complaint, Kubik, in his role as liquidator, breached the “fundamental principle of competence and due care of the Ethics Code for members, by failing to communicate with them in an accurate and professional manner and providing misleading information”, regarding how much they would receive from the Redundancy Payments Office.

The IPA’s investigations committee reprimanded Kubik and fined him £500 and told him to make a contribution towards costs.

“The sanction reflects the decision that the breach in itself did not indicate serious misconduct; it was a training issue for Mr Kubik’s staff. However, the complaint is aggravated by the fact that the member had not taken responsibility,” the IPA said.

The Insolvency Service started publishing sanctions against IPs this week for cases heard by the insolvency profession’s regulators, from November 2014. It also published reprimands against John Paylor and Frank Hatch.

Hatch, of Dudley in the West Midlands, was issued with a licence withdrawal order on 8 December, in relation to the IPA’s Membership & Authorisation (M&A) Committee’s decision to withdraw his insolvency licence.

Hatch “failed to co-operate with the inspection process and implement the recommended changes to his practice in relation to numerous deficiencies both operational and compliance related,” the IPA said.

As a result of the latter it was found that Hatch had ceased to be a fit and proper person to act as an insolvency practitioner.

Paylor of London was issued with a disciplinary consent order by ICAEW on 16 January. The complaint was that Paylor, acting in his capacity as administrator having issued his first notification to creditors on 22 May 2013 advising of his appointment and of a pre-packaged sale of the company’s assets, failed to comply with SIP 16 guidance.

With his agreement, he was reprimanded, fined £500 and ordered to pay costs.

“In deciding the penalty the committee took into account that this was a failure to comply with the disclosure requirements to provide a satisfactory explanation and justification of the pre-packaged sale but not a criticism of that sale or an abuse of the pre-packaged sale process,” ICAEW said.

Whitepaper

The Future of Finance is in the CFO's Hands

Business The Future of Finance is in the CFO's Hands

3m
Save a Week a Month Consolidating Accounts

Accounting Software Save a Week a Month Consolidating Accounts

4m
Mitigating Risk Through Internal Control

Legal Mitigating Risk Through Internal Control

4m
Could tax season have run more efficiently?

Corporate Tax Could tax season have run more efficiently?

5m

Related Articles

Late payments like "crack cocaine" for large businesses

Business Recovery Late payments like "crack cocaine" for large businesses

2m Tom Lemmon
More bad news for Debenhams

Business Recovery More bad news for Debenhams

9m Emanuela Hawker, Reporter
Insolvency and corporate governance

Business Recovery Insolvency and corporate governance

9m Chris Laughton
Impact of Brexit on restructuring and insolvency

Business Recovery Impact of Brexit on restructuring and insolvency

11m Emma Smith, Managing Editor
Toys R Us UK and Maplin enter into administration after failing to secure buyers

Business Recovery Toys R Us UK and Maplin enter into administration after failing to secure buyers

1y Alia Shoaib, Reporter
How to avoid a Carillion collapse

Business Recovery How to avoid a Carillion collapse

1y Russell-Cooke
Carillion collapse: The week so far and industry reaction

Business Recovery Carillion collapse: The week so far and industry reaction

2y Emma Smith, Managing Editor
Carillion: PwC appointed as special managers – what happens now?

Business Recovery Carillion: PwC appointed as special managers – what happens now?

2y Emma Smith, Managing Editor