Statutory Rules of Northern Ireland 2025 No. 177 were made on 12 November 2025 and come into operation on 9 December 2025. Issued by the Department for the Economy, the Insolvency Practitioners (Amendment and Transitional Provisions) Regulations (Northern Ireland) 2025 amend the Insolvency Practitioners Regulations (Northern Ireland) 2006 to update bonding requirements. The instrument is sealed by the Minister for the Economy, Dr Caoimhe Archibald.
The changes include raising the general penalty sum to £750,000 and requiring interest on relevant losses at a rate above the Sterling Overnight Index Average (SONIA). They also introduce a minimum two‑year run‑off period for claims after an insolvency practitioner’s release or discharge, set a minimum six‑year specific penalty sum (SPS) indemnity period, and create a 60‑day advance notice duty before a specific penalty sum expires.
Schedule 2 paragraph 3(2)(b) is substituted so that the £750,000 general penalty sum is available if there is no specific penalty sum in force for a case, or where the specific penalty sum is insufficient to meet all claims. This closes gaps at the outset of appointments and ensures a consistent level of fallback cover across cases.
Paragraph 3(2)(a) is amended to require the payment of interest on relevant losses at a rate above SONIA. New paragraph 8ZB confirms that interest runs from the date of the relevant loss until the date the claim is paid, clarifying the compensation period for affected estates and standardising how late payment is addressed.
A new head at paragraph 3(2)(f) requires the bond to meet reasonable costs and expenses of a successor insolvency practitioner. This covers the costs of investigating suspected fraud or dishonesty, preparing and evidencing a claim under the bond, obtaining expert advice including legal advice, and duplicate administration costs that arise when control of the case transfers.
New paragraph 8ZA requires a minimum two‑year run‑off period during which claims may be made in a case. The period starts on the date the insolvency practitioner is released or discharged in that case. Where the office is later held in a subsequent capacity, the two‑year period runs from release or discharge from that subsequent office.
Paragraph 3(3)(c) allows a specific penalty sum to be limited by time through an SPS indemnity period. Under new paragraph 8ZC, any SPS indemnity period must be at least six years from the date of appointment and be extendable with the surety’s consent. Consent must not be unreasonably withheld, though conditions such as an additional premium may be applied.
Paragraph 8ZD introduces a notification duty on the surety. At least 60 days before any specific penalty sum is due to expire or otherwise cease for reasons other than the insolvency practitioner’s release or discharge, the surety must notify both the practitioner and the authorising body and set out whether it will extend or renew, including any conditions. The specific penalty sum remains in force until this notice requirement is met, unless the bond parties agree otherwise.
Definitions are added in Schedule 2 to support these provisions. “Relevant losses” are those referred to in paragraph 3(1)(b) and “SPS indemnity period” is defined for clarity. Separately, regulation 2 of the 2006 Regulations is tidied to ensure the definition of “insolvency practitioner” properly cross‑refers to Article 349A of the Insolvency (Northern Ireland) Order 1989.
Transitional and saving provisions are set out in regulation 6. In general, the amendments do not apply to a bond issued before 1 January 2027 in relation to a case where the insolvency practitioner was appointed before 1 January 2027. The term “appointed” includes appointment in a subsequent capacity if the initial capacity appointment was before that date.
During the transitional period-from 9 December 2025 to 31 December 2026-the Department may approve forms of bond that comply either with the 2006 Regulations as they had effect immediately before 9 December 2025 or with the Regulations as amended by this instrument. This allows sureties and authorising bodies time to revise templates and operational processes.
For practitioners and sureties, immediate operational tasks include revising bond documentation to capture interest above SONIA, the two‑year run‑off, the six‑year SPS indemnity period, and the 60‑day notice requirement. Practitioners should review cover schedules against estimated estate values and plan for extended exposure, including potential premium effects and the recovery of successor costs.
The Northern Ireland changes closely track the model already implemented for Great Britain, where equivalent provisions-including the £750,000 general penalty sum and new paragraphs 8ZA to 8ZD-were introduced in 2024. Alignment should ease compliance for firms handling cross‑border appointments while preserving devolved commencement and transitional dates.
According to the accompanying note, no regulatory impact assessment has been produced as no, or no significant, impact is foreseen. An explanatory memorandum has been published alongside the instrument on legislation.gov.uk, supporting implementation by professional bodies, sureties and insolvency practices.