Updated Insolvency Code of Ethics: What's changing for practitioners?
An updated Insolvency Code of Ethics (the “Code”) will come into effect on 1 October 2025, introducing significant revisions for insolvency practitioners. The new code, issued by the Institute of Chartered Accountants in England and Wales (ICAEW), the Institute of Chartered Accountants of Scotland (ICAS), and the Insolvency Practitioners Association (IPA), aligns with the 2024 International Ethics Standards Board of Accountants (IESBA) Code.
The revisions are designed to address the modern professional environment, with a focus on professional behaviour, the role and mindset of practitioners, and the impact of technology.
Key revisions in the updated code
The most notable changes fall into three main categories.
- Professional behaviour
The Code clarifies and expands the standards of professional conduct. It introduces a clear distinction between a practitioner’s "professional life" and their private life. Conduct is now assessed against a test of what a "reasonable and informed third party" would conclude brings discredit to the profession. This test already features elsewhere in the Code.
This standard extends beyond client work to encompass all professional interactions, including those with colleagues. It explicitly covers work-related social events, regardless of time or location, and conduct on social media platforms where an individual’s professional status is visible.
- Role and mindset
The update places greater emphasis on a practitioner's responsibility to act in the public interest. It encourages compliance with the spirit, not just the letter, of the code.
Key changes include a new requirement for practitioners to maintain an "inquiring mind" and an emphasis on demonstrating "strength of character" when facing difficult situations. The revisions also highlight the importance of being aware of potential biases in professional judgement and promoting a positive ethical culture within their organisations.
- Technology
In response to rapid digitalisation, the code introduces technology-neutral principles to guide practitioners. The changes strengthen the duties of professional competence and confidentiality in a digital context. This includes an explicit requirement to safeguard confidential information throughout its entire data lifecycle and a duty to determine whether the output from technology is appropriate before relying on it.
What next?
The updated Code reflects a clear trend towards greater accountability and ethical diligence across the professional services landscape. Insolvency practitioners should begin to familiarise themselves with the updated standards, particularly the expanded scope of "professional life" and the new duties related to the use of technology. These changes will require practitioners to carefully consider how they conduct themselves in a wide range of settings and how they integrate new technologies into their work.
