On 7 October 2015, the Financial Conduct Authority launched a ‘Call for Inputs’ on competition in the mortgage sector. The Call for Inputs provides an opportunity for interested parties to help the FCA identify potential areas where competition may not be working well and could be improved.

November 2015 Financial Services Bulletin The Supreme Court of Canada Confirmed Today the Paramountcy of the Bankruptcy and Insolvency Act over License Denial Regimes The Supreme Court of Canada (“SCC”) released today its much awaited decision in 407 ETR,1 in which it upheld the decision of the Ontario Court of Appeal, and ruled that Section 22(4) of the Highway 407 Act is constitutionally inoperative to the extent that it is used to enforce a provable claim that has been discharged pursuant to section 178(2) of the Bankruptcy and Insolvency Act.

On October 13, 2015, the Ontario Court of Appeal (the "Court of Appeal") upheld1 a CCAA judge's decision that the "interest stops rule" applies in CCAA proceedings, which significantly limits unsecured creditors' ability to recover interest accrued after the date of a debtor's insolvency.

Background

October 2016 will see the Third Parties (Rights against Insurers) Act 2010 finally brought into force. Although five years since it passed through Parliament, the act has never received Royal Assent due to a number of practical hurdles.

The Insolvency Service published its quarterly statistics on company insolvency and individual procedures showing:

According to recent press reports, Dave Forsey, Chief Executive of Sports Direct, is the latest (and most high-profile) executive to be hit by court proceedings concerning alleged failure to comply with redundancy notification procedures - in his case in his former position at fashion retailer, USC. As these and other reports confirm, there is clear evidence that the Insolvency Service is increasingly proactive in pursuing organisations, their senior personnel and insolvency practitioners who fail to file the requisite redundancy notification form (HR1) on time.

With the first PPF levy invoices based on the new Experian insolvency-risk assessment model starting to land on trustees’ door-mats, many schemes have made the unwelcome discovery that their PPF levy for 2015-16 has suffered a substantial hike. Around 200 schemes are reported to have seen levy rises in excess of £200,000.

Credit Today reports that recent statistics from the Accountant in Bankruptcy (AiB), the government agency that administers the insolvency regime in Scotland, have revealed that:

The Insolvency (Protection of Essential Supplies) Order 2015 which comes in to force on 1 October 2015 significantly changes the options available for suppliers of IT services in relation to their rights against insolvent customers. Any IT supplier caught within the definition of the new legislation will need to beware that they can no longer insist on payment of outstanding invoices as a condition of continued supply to an insolvent business, nor rely on clauses applying automatic price rises upon insolvency of the customer.

(1) PST Energy 7 Shipping LLC and (2) Product Shipping and Trading S.A. v (1) OW Bunker Malta Limited and (2) ING Bank N.V. [2015] EWHC 2022 (Comm)