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What are the requirements regarding the need to have in place professional indemnity insurance?

In accordance with the 2014 Act, IAASA has made Regulations setting professional Indemnity cover requirements for liquidators required by Section 634 of the 2014 Act. Statutory Instrument 127 of 2016 Companies Act 2014 (Professional Indemnity Insurance)(Liquidators) Regulations 2016 came into effect on 1 June 2016.

In summary, the professional indemnity insurance shall provide a limit of liability for each and every claim of not less than €1,500,000 and provide cover for defence costs. This insurance shall be at a level which is commensurate with the value and nature of the work undertaken by the insured. There is also a requirement for run-off cover.

It is a matter for individuals currently acting as liquidators to seek their own advice to ensure that they are in compliance with all legal and professional requirements in relation to their acting as liquidator in any particular case.