Code FAQ: Clarification on independence declaration in DIRRI (version 2 template)

The purpose of this FAQ is to clarify that the new independence declaration in the DIRRI template (version 2) meets the requirements of the Code.

Does the new Independence declaration in the DIRRI template in PSI2 (version 2 approved 24 November 2020) meet the requirements in the COPP: Insolvency Services at section 4.2?

The disclosure requirement in the COPP: Insolvency Services at 4.2 requires:

  1. a declaration that the Member has undertaken an evaluation of the significance of any threats to Independence and that the Member determined that the Member is independent for the purpose of accepting the Appointment in accordance with the requirements of the relevant legislation and this Standard;

The declaration in the PSI2 DIRRI template is:

I/We have assessed our independence and I am/we are not aware of any reasons that would prevent me/us from accepting this appointment.

A footnote is also provided in the template which states:

  1. The assessment of independence has been made based on an evaluation of the significance of any threats to independence and in accordance with the requirements of the relevant legislation and professional Standards.

In combination, the independence declaration and footnote 1 in the PSI2 template will meet the requirements of the COPP: Insolvency Services.