It is very rare for a supervisor’s remuneration to be approved on a time cost basis in IVAs nowadays. A fixed monthly/annual fee or a fee expressed as a % of realisations is very much the norm. Unfortunately though, even though the remuneration is not fixed on a time cost basis the IP Regulations 2005 require the supervisor to keep time records in all cases and supervisors must ensure that those Regulations are always complied with.
But what about reports to creditors in IVAs? Does time cost information still have to be provided in those in cases where supervisor’s remuneration has not been fixed on a time cost basis? Our view is that there is no SIP 9 requirement to do so in such cases, but just to be certain we asked the ICAEW and IPA for their views. We are glad to say that they have both confirmed that in IVAs where supervisor’s remuneration has been fixed on a basis other than a time cost basis, then details of the time spent and charge out value need not be provided to creditors in annual or final reports.
I would, however, remind you that for IVAs commenced on or after 6 April 2010 the new rule 5.66 applies. This rule requires a supervisor to provide time cost information to any debtor or creditor who requests it.
