As an Insolvency Practitioner (IP), it is crucial to stay informed about the latest legislative changes that impact your post-appointment processes. The Building Safety Act 2022 (as amended by the Leasehold and Freehold Reform Act 2024) introduces new responsibilities that you must be aware of.
Your reporting obligations under the Building Safety Act 2022
Section 125A of BSA 2022 requires IPs to report specific information to various authorities. If you are deemed to be a person who is responsible for a higher risk building or relevant building you must notify the local authority and the fire and rescue authority in the area where the building is situated. In the case of a higher risk building, you must also notify the Building Safety Regulator.
You must make the notification within 14 days of appointment.
Are you a person responsible for a higher risk or relevant building?
A person is “a responsible person” for a building if they hold a legal estate in possession in any part of the common parts or is under a relevant repairing obligation in relation to any of the common parts.
Most IPs will be a responsible person if they appointed as administrator, administrative receiver, liquidator or trustee in bankruptcy (provided the company or individual at the time of appointment was/is responsible for the high risk or relevant building).
A higher-risk building is a building in England that is at least 18 metres in height (or at lease seven storeys) and contains at least two residential units.
A relevant building is a residential building in England of at least five storeys or 11 metres in height.
Compliance and best practices
It is unclear whether section 125A applies to appointments made on or after 24 July 2024, or whether it can apply to appointments made before then. It is best practice to notify the relevant authorities of appointments made before section 125A came into force.
To help comply with the BSA 2022, you should:
- Maintain updated records of the buildings you manage;
- Understand the risks associated with the buildings you manage;
- Engage with authorities to ensure that you are reporting information promptly; and
- Educate your team so that they are well-informed of the changes and importance of compliance.
The Restructuring and Insolvency team at Stephens Scown LLP can help if you are unsure of your obligations. Please do get in touch if you would like to talk through any appointments.