ICAS WELCOMES HOLYROOD BANKRUPTCY BILL REPORT 18 May 2006

The Institute of Chartered Accountants of Scotland (ICAS) has welcomed the report from the Enterprise and Life Long Learning committee on the Scottish Executives Bankruptcy and Diligence Bill.

MSPs on the committee have recommended that Trust Deeds should continue to have a major role to play and that they should be simple to access, rigorously monitored and appropriately regulated.

The committee also said that it does not believe the case has been made for the setting of a minimum dividend of 30 pence in the pound.

ICAS is firmly of the opinion that both recommendations are sensible and in the public interest.

The Enterprise committee also questioned whether the budgets and resources to be provided to the Accountant in Bankruptcy will be sufficient and recommends that the Executive takes steps to consider the likely level of work that will be required and resource the service accordingly.

ICAS also welcomes the recommendation that the debt advice and information package should be extended to protected trust deeds and advice provided by insolvency practitioners.

In another important development MSPs have called for a wider definition of apparent insolvency.   ICAS believes this will have far reaching positive benefits because it would mean that many people with money problems, who were previously excluded, would find it easier to access bankruptcy. Again, ICAS believes this is a sensible and timely move as the number of people with credit problems rises year on year.

Bruce Cartwright, the Convener of the Insolvency committee at ICAS and a partner with PWC, said: We are delighted that MSPs have listened to the arguments presented by ICAS. The committee has quickly got a grasp of the details of a Bill which is extremely technical but will have a huge impact on the lives of a growing number of people. We look forward to working with MSPs and other parties to come up with the best solution for Scotland .

Director of Insolvency with ICAS, Anne Bryce, said "We had a very productive meeting with the Deputy Minister, Allan Wilson, at which we were asked to come forward with constructive solutions to the situation surrounding Protected Trust Deeds and Apparent Insolvency.   Together with other bodies we have provided sensible and balanced answers which will meet the needs of creditors and debtors.

NOTES TO EDITORS

1.

The Institute of Chartered Accountants of Scotland (ICAS) is the world's first professional body of accountants, receiving its Royal Charter in 1854.   ICAS has over 16,000 members worldwide and the CA designation is reserved exclusively for their use in the UK .

2.

Under the Royal Charter, the Institute works in the public interest.   The objective of ICAS is to uphold the integrity and standing of the profession of chartered accountancy in the interests of society and membership, through excellence in education and the development of accountancy and through service to members and the enforcement of professional standards.

3.

ICAS is the fastest growing accountancy body in the UK in terms of worldwide student numbers with latest figures ( Source: Professional Oversight Board For Accountancy (POBA) - Key Facts and Trends in the Accountancy Profession March 2006 ) showing a student growth rate of over 100% between 1999 and 2004. It is the only UK professional accountancy body to both educate and examine all of its students.   The CA qualification is known around the world for consistency and high standards and ICAS enjoys a widely recognised reputation for providing the 'gold standard' in accountancy education.

Contact: ICAS Press Office on 0131 347 0309