autumn 2005

student bulletin IPAIPA Students up to the Mark In this edition CPI and Early Entry Commenting on the 23% increase in students sitting this year’s Certificate Examinations June 2005 of Proficiency in Insolvency Examination, IPA President Louise Verrill said: Results “It is hugely encouraging for the future of the profession that more people than ever before are taking the CPI to acquire a now well recognised and CPI Examiner’s Report valued insolvency qualification.” There was also an increase in the pass rate – 69% compared with 61% in 2004. JIE: The Price of Success – A Season without Spurs Jonathan Birch, Chairman of the Examinations & “More sat the EEE Training Committee, said that the CPI represented a good test of all round practical Accounting paper in June E&T Student Issues insolvency knowledge, and it was evident that Sub-Group students had worked hard to build on their desk 2005 than in the previous work and deliver some excellent results. He particularly congratulated the prize winners – year’s two sittings, with a Kiri Jimmieson, Begbies Traynor (first); Mark Patterson, BDO Stoy Hayward, and pass rate of 81% and 13 of Amanda Jones, Begbies Traynor (joint second); Please pass this on and Brendan Hogan, Unity (third) – and the the 21 pass students achieving nine students who had achieved distinctions. If you know someone in your firm The full CPI June 2005 results are on the back distinctions or merits.” who might be thinking about, or page of this edition. could be encouraged to think There were also increases in the numbers about, studying for an insolvency sitting the Early Entry Examinations as a Antoinette Thorpe, McCambridge Duffy & Co; qualification, why not pass this preliminary step towards the Joint Insolvency and Ivy Yeap, K S Tan & Co. bulletin on to them, or order an Examination. More sat the EEE Accounting The full EEE results are also on the back page. additional copy (or copies) from paper in June 2005 than in the previous year’s the IPA or download from the IPA two sittings, with a pass rate of 81% and 13 of the website. 21 pass students achieving distinctions or merits. There was a similar increase in those sitting Contact: Maria Weemes, the Taxation paper, with a pass rate of 83%; while IPA Student Officer at: those sitting the Business Law paper, and facing IPA, 52-54 Gracechurch Street, what was generally judged to be a tough EC3V 0EH challenge, still markedly improved on last year’s 020 7623 5108 results with a highly creditable 56% pass rate. [email protected] Particular congratulations to those who have website: completed the three EEEs this time round, and www.insolvency-practitioners.org.uk now move on to the JIE – James Baggley, BDO Stoy Hayward; Clare Davies, Deloitte; Michael Durkan, Findlay James; Simon Edel, Ernst & Young; Steven Illes, Baker Tilly; Nicholas Nicholson, RSM Robson Rhodes; John Radford, Tenon Recovery; Dominic Startup, The Pay Plan Partnership; Francesca Tackie, Budsworth & Co; Eliot Mosafi on JIE success at page 3 Examiner’s Report CPIThe time has come round again to offer some comments on the CPI Examination. 197 candidates sat2005 the paper in June 2005, drawn from a wide range of firms, both in terms of size and location, as in previous years. The number of candidates represented an increase of 23% on 2004. The pass rate was 69%, a noteworthy increase on the pass rates of 61%

and 63% in the previous two years. by David Thorniley

General comments to be dealt with in an administrator’s statement of Claims adjudication From the feedback I received, this year’s paper proposals are set out in Para 49 Sch B1 IA86 and This question asked candidates how they would was considered accessible, and provided ample R2.33 IR86. adjudicate claims involving retention of title, opportunities for candidates to demonstrate their The second part of the question on adminis- contractual interest, set-off, employee/sub- knowledge of insolvency law and practice. It is tration exit routes required a little more thought. contractor rights and a bank’s claim for wages pleasing to report that candidates dealt with the Paras 49, 76 and 79-84 Sch B1 IA86 provide at advanced. It gave an opportunity for candidates bankruptcy questions in particular with far least nine potential exit routes: to apply their practical experience under greater confidence than in previous years. By examination hall pressure, and produced a contrast, however, understanding of the new – in • company voluntary arrangement; mixed crop of answers. Examination technique fact not so new – administration procedure was • scheme of arrangement; was quite poor in some cases: if a question is disappointingly sketchy. • automatic termination after one year; broken down into five sections with the available I am always surprised how many candidates • court order on the administrator’s application; marks indicated for each, candidates have got to throw away easy marks by not observing the key • notice of termination by out of court apportion their time accordingly to maximise mantras of examination technique – read the administrator; their mark scoring potential. question carefully, allocate time proportionately • court order on application alleging improper and set out your answers with clarity. Candidates motive; Deficiency account/investigations who did generally achieved good results, and in a • winding up order made, or provisional The final optional question appeared to scare off number of instances really outstanding results. liquidator appointed, by court on public many candidates, probably because it had a interest grounds or on application by the FSA; computational aspect. But it is always possible Multiple choice questions • conversion into creditors voluntary liquidation; with this type of question to notch up some By and large, these were answered well. • dissolution where there is no prospect of a marks for a clear layout, and all candidates sitting Candidates were sure of their ground on most areas, distribution to unsecured creditors. the CPI must be capable of preparing basic although should perhaps brush up on matters such financial statements such as statements of affairs as time limits for antecedent transactions and the Candidates who put down all of the above and deficiency accounts. destruction of company books and records. points probably also remember that Horst The second half of the question raised Remember, too, that administrative receivership is Bucholtz was one of the Magnificent Seven, but certain matters requiring investigation, in still an examinable area of the syllabus. it was not necessary to set out all these items to particular voidable transactions under S238/239 score full marks. IA86 and re-use of company name under s216 Short compulsory questions Schedule B1 and the new Pt II Rules are at the IA86. Again, some candidates’ basic technique These four short questions accounted for 16% of heart of the syllabus and of fundamental practical let them down. Candidates must tailor their the marks, and provided good opportunities to pick relevance, and candidates must ensure they are answers to the question, and not waste precious up marks. The first two questions (Schedule 4 up to speed on these procedures. time churning out information which is not powers exercisable with sanction, and the statutory required by the examiner. In this case, the requirements for a debtor to apply for an interim Bankruptcy – trustee’s interest in property question specifically told candidates to ignore order) were answered consistently well, and typi- Perhaps it is indicative of the market that candi- issues of wrongful trading. fied the standard of knowledge expected for the CPI. dates answered this question very well indeed, By contrast, the question on the information to and certainly much better than bankruptcy ques- Summary be included in a debtor’s petition for his own tions have been attempted in recent years. There Overall, the paper concentrated on mainstream bankruptcy was answered unaccountably badly, was a good appreciation of the necessary proce- areas of the syllabus. It was pleasing to see candi- given that most of the information required is dures to establish and protect the trustee’s inter- dates demonstrating a sound knowledge of pretty straightforward – see R6.38/R6.39 IR86. est, and of the options available to the trustee to bankruptcy law and practice, but there is consid- For the prescribed fund calculation, candidates realise his interest. erable room for improvement in knowledge of tended to fare either very well or very badly, and Again, this question tested practical issues at administration procedures. And candidates need in most cases it was the latter. The basis of calcu- the heart of the syllabus. to avoid basic examination technique pitfalls to give lation for the prescribed fund is not in itself compli- themselves the best prospect of getting through. cated – where the net property is over £10,000, 50% Advantages/disadvantages of of the first £10,000, plus 20% of the excess over individual voluntary arrangements v Congratulations £10,000 up to a maximum of £600,000 -and candi- bankruptcy Congratulations to everybody who passed and dates need to be confident they can apply it. This was a bread and butter question which was good luck to everybody intending to sit the paper generally fielded pretty well by most candidates, next year. Administrator’s proposals/exit routes and provided a good opportunity to pick up from administration marks. Some candidates would have fared better David Thorniley This fifteen mark question was the most poorly if they had given more thought to the layout and David is a partner in Haines Watts, London; and a answered on the whole paper. The matters falling clarity of their answer. member of the IPA Examinations & Training Committee

2 JIE: The Price of Success – A Season without Spurs E&T Student Issues I remember the words of my firm’s head partner as I left the office to Sub-Group – attend the first of many BPP courses – “You had better pass all three of these exams first time or there will be trouble!” Your Ideas Matter

by Eliot Mosafi

So you can imagine the relief I felt when my 2 While the BPP home study questions come During the course of the rounds of Better mobile phone rang coming out of the Eurotunnel under criticism for not being like real exami- Regulation meetings last year, it was proposed into France to hear my practice manager shouting nation questions, I feel that it is worthwhile that the IPA should look at setting up some form “You passed all three – well done”. completing them as near to the deadlines set of workshop or other support network for These were the toughest examinations I have as possible. The questions cover the key topics, students. Now that the Regional Members’ ever sat in my life, and to give yourself a good and if you stick to the deadlines then you Meetings have become a pretty well-established chance of passing you need to commit to plenty should cover most material by the revision part of the IPA calendar, the Examinations & of revision as early as possible. Knowing how much course. I suggest reviewing each question a Training Committee has asked a Sub-Group work I was going to have to do, I gave up my Spurs week before attempting it and studying the under Anna Petrusyk to explore suggestions season ticket as I knew that Saturdays would be relevant topic in the week before trying the already received and encourage further ideas in spent revising. But the insolvency knowledge that questions. Make sure you review your developing an IPA student “package”. Anna is I now have has really made a difference to my marked script to see where you went wrong joined on the Sub-Group by those who have been, ability to do my job well, and I know that my career (and of course where you were right). or are currently going through, the studying and will benefit from having this vital qualification. examination “mill” – Justin Brown, Butcher There are three papers, Liquidations, 3 You will get a question bank for each topic. Get Woods; Allister Manson, Smith & Williamson and Administration and Administrative Receivership, BPP to break the questions down by topic and a Member of the Examinations & Training and Personal Insolvency for which BPP hold practice all the questions in each topic if possi- Committee; Deborah Manzoori, Deloitte and short 2/3 day courses spread out from April. ble. After a while you may notice that the same Member of Council; and Jim Stewart-Koster, There is also a final intensive revision course in question is asked most years, just worded slightly Grant Thornton and a Member of the November. Like most people I found Liquidations differently. By the time you get to the revision Publications & Public Relations Committee. to be the hardest subject due to the heavy course you should have done most questions technical content. The BPP courses are only an at least once and the key ones perhaps three So, the Sub-Group would very much like to hear introduction to each subject, and there is a real or four times. Keep a note of every time you your ideas for students on matters such as: emphasis on home study to cover the course attempt a question and your score. That way you material. can see the topics you are doing badly at and • The value and frequency of workshops, and In September I concluded that I was unlikely to the questions you have yet to try. their content – for example, the President pass unless I stepped up the amount of work I or a senior Council Member to say some- was doing. I asked my employer for more time off 4 Get familiar with the Acts and Rules as soon thing about the IPA; an examinations mod- and was granted an extra two weeks of half-day as possible and learn the SIPs as thoroughly erator/marker and someone from the study study leave which really helped. as you can. If you see a reference to an Act in providers to talk about the results from the a question then look it up to see what it says. last CPI/JIE and preparing for the next My four key recommendations to anyone sitting The SIPs will come up in each and every JIE/CPI; a member of the E&T Committee the JIE are: examination, so they need to be learnt really on developments in relation to for example well if you are going to pass. the entry requirements of the CPI and JIE 1 Take BPP’s advice and try a new learning (where changes are in the offing); and of method. A long list of material to learn (eg My best wishes to those sitting in a month or so’s course students to discuss with the “panel” SIP3 or SIP8) can be split into headings. I time, and to those about to embark on their stud- and amongst themselves their experiences made up amusing football based anagrams ies for JIE 2006. and needs and issues such as progression to remember the first letter of each heading in the profession. Eliot Mosafi and put up multicoloured charts of these • Networking opportunities and social anagrams on the walls and practiced re- Eliot is with DTE Leonard Curtis, London. He joined events, such as was featured in the last edi- writing them out for months until they the IPA as a student member in 2003 and was the tion of Insolvency Practitioner third Top IPA Student in the JIE 2004 became unforgettable. • What you would like to see in IPA Student Bulletin or in the IPA’s publications generally • Service delivery from the IPA and its study CPI 2005: An Apology course/material providers, and what more/better/different you would like; and Following the loss of the multiple choice ques- IPA’s apologies. We have sought so far as we think indeed from the JIE Board. tion/answer scripts of twelve candidates in this we can fairly and reasonably do to find a solution for year’s CPI sitting at the , Derby and them to what is a disconcerting and unsatisfactory situ- Liverpool ICSA examination centres, the ation; and we are now looking at the arrangements for Please e-mail or write in the first instance Examinations & Training Committee has put in hand next year which should also lead to speeding up in the to the IPA Student Officer, Maria Weemes: a review of the arrangements for administering the delivery of scripts to the markers and announcement 52-54 Gracechurch Street, London EC3V 0EH Examination. of the results, regrettably further delayed this year while [email protected] investigations were made into the lost scripts. Jonathan Birch, E&T Chairman said: “The loss of the Changes in arrangements, which we should be able scripts was singularly unfortunate for the candidates to announce early in the New Year, should not affect Note: The IPA will be moving early in the New Year concerned, and I would like to offer them my and the students’ timing and planning for next year’s CPI.” to Valiant House, Heneage Lane, off Creechurch Lane, London EC3: further details will be circulated before Christmas.

3 Summer 2005 Pass Lists

Certificate of Proficiency in Insolvency June 2005 Pass List

Name Firm Firm Location Name Firm Firm Location K Jimmieson 1ST PLACE Begbies Traynor Brighton B Hunwicke Ensors Ipswich A Jones JT 2ND PLACE Begbies Traynor S Jerrard KPMG LLP Southampton M Patterson JT 2ND PLACE BDO Stoy Hayward LLP Hatfield A Kay Baker Tilly Hull B Hogan 3RD PLACE Unity Bolton A Keane KPMG LLP London R Baggoley * DTE Leonard Curtis Bury A Kendall Middleton Partners London H Baldwin * Milner Boardman & Partners Hale M Kesek Begbies Traynor London J Barley * Vantis Numerica Worthing T King Grant Thornton UK LLP Brighton K Carpen * KPMG LLP London E Kinsela KPMG LLP London E Katende * RSM Rhodes LLP London W Lee KPMG LLP London H Otto * BDO Stoy Hayward Manchester G Lewis PKF M Pallott * Kingston Smith & Partners LLP London E Little Insolvency Practitioners Association London J Royle * Wilson Pitts Leeds C Logue Fox Associates J Thomson * Kroll Ltd Glasgow R Lott No Firm Cheltenham J Aitken PricewaterhouseCoopers LLP London J Lumb KPMG LLP Leeds R Aldridge Fanshawe Lofts Southampton G MacNaughton Moore Stephens London K Allison Tenon Recovery Sunderland R Margetts KPMG LLP London D Aydin No Firm Stourbridge J Marston KPMG LLP Leeds K Ballam Vantis Redhead French Hornchurch N Mathew Capital Insolvency Service Ltd London H Bamforth Budsworth & Co Manchester J McAuley Haines Watts Glasgow J Barber Haines Watts Birmingham N McGinty Middleton Partners London S Barry Accuma Insolvency Practitioners Ltd Manchester E Moorooven David Rubin &Partners London R Bathgate PricewaterhouseCoopers LLP Aberdeen J Morgan McCann Taylor Shipley C Beavis Larking Gowen Norwich V Morrison-Crietee Cadwalader Wickersham &Taft LLP London S Blackwell Mazars LLP Brighton D Morton Tomlinsons Manchester S Bourke HKM LLP Leicester S Morton Lovewell Blake Lowestoft N Brearey KPMG LLP J Munday Tenon Recovery London L Bruce HM Revenue & Customs Glasgow G Nichols Langley & Partners London P Byrne McCambridge Duffy & Co Cardiff N Nicola David Rubin & Partners London M Callaghan PricewaterhouseCoopers LLP Leeds C North Unity Bolton A Childe PricewaterhouseCoopers LLP Leeds K O’Donnell McCambridge Duffy & Co Cardiff A Clarke Ensors Ipswich J Pain Grant Thornton UK LLP Brighton C Cockburn Haines Watts A Parkin Lombard North Central PLC Rotherham S Cook Vantis Numerica St Albans G Parla Kingston Smith & Partners LLP London N Cordell Wilson Field Sheffield J Patterson PricewaterhouseCoopers LLP Belfast A Crowshaw Baker Tilly Manchester C Pearson Mazars LLP Manchester R Crumpler KPMG LLP Cayman Islands A Porter Ritch & Conally Cayman Islands M Curran Begbies Traynor Manchester D Powell KPMG LLP Birmingham I Dalziel KPMG LLP Stoke-on-Trent Y Quinn Begbies Traynor Glasgow M Darlington Gibson Booth Barnsley D Ramsey Baker Tilly Glasgow A Davidson Rogers Evans Southampton G Rees Findlay James Cheltenham D Dickson Haines Watts Glasgow E Reid Cavanagh Kelly Dungannon M Dillon Begbies Traynor Manchester D Render Chamberlain & Co Leeds F Dunn No Firm Bristol J Riley Walletts Insolvency Service Stoke-on-Trent R Elford Charles Russell Guildford M Roome Deloitte Nottingham S Elliott Tait Walker Newcastle-upon-Tyne M Royce O’Hara & Co Batley A Ellis PricewaterhouseCoopers LLP Leeds I Royle Wilson Pitts Leeds J Fantom Wilson Field Sheffield A Sharma David Rubin & Partners Birmingham V Fearne Addleshaw Goddard London R Shilton KPMG LLP Edinburgh M Fielding Wilson Field Blackburn I Small Begbies Traynor London R Folds Begbies Traynor Exeter E Smith Kroll Ltd London S Foo Mitchell Charlesworth Chester R Smith DFA Law Northampton S Forde PricewaterhouseCoopers LLP London J Stares Fanshawe Lofts Southampton S Forrest Adcroft Hilton Blackpool P Sullivan Baker Tilly Milton Keynes J Gibbs No Firm Birmingham S Sutherland KPMG LLP Aberdeen V Goodyear Mercer & Hole St Albans W Tatton Lines Henry Altrincham D Graham KPMG LLP Liverpool A Taylor KPMG LLP Reading T Green Smith Cooper Derby J Taylor Cadwalader Wickersham & Taft LLP London E Griffith K J Watkin & Co Aldridge D Thomas KPMG LLP London K Guthrie KPMG LLP Aberdeen B Wall Addleshaw Goddard London R Haines KPMG LLP Reading J Wallace Findlay James Cheltenham N Harding Larking Gowen Norwich A Watling Middleton Partners Salisbury P Harding BDO Stoy Hayward LLP Leeds H Webb Grant Thornton UK LLP Bristol J Hart Carter Backer Winter London A Webber PKF Birmingham L Henderson Haines Watts Leeds J West No Firm Bromley P Hibbert Baker Tilly Watford E Whayman KPMG LLP Bristol S Hill BRI (UK) Limited Coventry K Williams Griffins London R Hotham Milsted Langdon Taunton S Williams KPMG LLP Bristol S Hunt KPMG LLP Bristol R Young Middleton Partners London

* = Distinction

ICSA Introduction to Accounting June 2005 Pass List ACCA Business Taxation June 2005 Pass List

Name Firm Firm Location Name Firm Firm Location P Allen Baker Tilly London J Baggley BDO Stoy Hayward Reading A Bakonyvari Begbies Traynor Southend on Sea C Caulfield UHY Hacker Young London E Berridge** PricewaterhouseCoopers LLP Leeds A Cordon Begbies Traynor Nottingham G Castle* PricewaterhouseCoopers LLP Manchester C Davies Deloitte London R Cherry** Baker Tilly Chelmsford C Duffy McCambridge Duffy & Co Derry A Dalton** Begbies Traynor Southend on Sea M Durkan Findlay James Cheltenham J Drury Begbies Traynor Southend on Sea S Edel Ernst & Young LLP London F Hamilton McCambridge Duffy & Co Derry A Fletcher The P & A Partnership Sheffield D Harrison* Begbies Traynor Southend on Sea M Hird Kroll Ltd Leeds J Hopkirk** Begbies Traynor Southend on Sea S Illes Baker Tilly London P Higley** B N Jackson Norton London A Johns Purnells Newport Y Holland** Oury Clark Slough R Kemp A Segal & Co London D Hurst** PricewaterhouseCoopers LLP Manchester L Lappin RSM Robson Rhodes LLP London S Irwin* McClure Watters Belfast M Mead Baker Tilly London R Kemp* A Segal & Co London N Nicholson RSM Robson Rhodes LLP London I Nairn Taylor Rowlands Stockton-on-Tees C Parkman Purnells Newport M Nichols** Grant Thornton UK LLP London J Radford Tenon Recovery Manchester A Patterson Henderson Loggie Dundee G Shankland Begbies Traynor London M Reeds No Firm Poole D Startup The Pay Plan Partnership Grantham D Startup The Pay Plan Partnership Grantham F Tackie Budsworth & Co Manchester A Thorpe* McCambridge Duffy & Co Derry K Taylor Cornfield Law LLP Eastbourne A Thorpe McCambridge Duffy & Co Derry ** = Distinction * = Merit D Wright Mercer & Hole London I Yeap K S Tan & Co London

Note: The ACCA does not award Distinctions/Merits. ICSA Business Law June 2005 Pass List

Name Firm Firm Location R Cherry Baker Tilly Chelmsford R Clarke The MacDonald Partnership London

R Crockett KPMG LLP Bristol www.hdesign.co.uk C Davies Deloitte London P Davies Grant Thornton UK LLP London L Holbrook KPMG LLP Bristol D Hurst PricewaterhouseCoopers LLP Manchester hdesign C Janssen PricewaterhouseCoopers LLP London M Mead* Baker Tilly London IPA H Pascoe Begbies Traynor Preston 52-54 Gracechurch Street D Startup The Pay Plan Partnership Grantham N Thorsesen KPMG LLP Bristol London EC3V 0EH R Tonks PKF Birmingham Tel 020 7623 5108 A West Maidment Judd Harpenden Fax 020 7623 5127

email [email protected] design & origination by * = Merit