1

BCDEFGHIJK

The Chief Executive

(If telephoning regarding this letter
please dial Sandra Jack*)
[For enquiries regarding money laundering
please dial Graeme Perry - 0845 6126403]

George House

126 George Street

Edinburgh EH2 4HH

*Tel: 0131 473 4682

Fax: 0131 473 4737

LP-1 Edinburgh 20


Your ref: -

Our ref: GT/SJ

25 November 2004

Dear Trustee/Agent

As you know, as part of our business continuity plan, which sets out how we will continue to provide a service during the various phases of relocation, we regularly review our case operations. I wrote to you on 20May 2003 and more recently 15April 2004 setting out changes to procedures. We have sought to encourage you to exercise the wide discretion which the legislation and the Agency scheme, provide, by reducing the areas of work on which you need to seek my approval. This has helped us mitigate the loss of experienced staff thus far but due to continuing pressures I need to widen your discretion further.

Following a review of correspondence, I have decided that you should contact us only on the matters listed below. This means that with immediate effect correspondence on matters not listed will not be actioned.

Agency cases
  • Requests for approval to undertake work under Duty10 (AnnexK3)
  • Requests for payment of outlays exceeding £50
  • Approval to incur outlays where they exceed £175
  • Approval to trade on business only
  • Recall of sequestration -calculation of fees and outlays due to AIB
Trustee cases
  • Requests for BAP disapplication (pre 1993 BAP cases only)
Agency and Trustee cases
  • Requests to instigate, continue or defend legal actions. When requesting please state the reason for your proposals to proceed with an action.
  • Dispositions for signing.
  • Waiving time for Calling Up Notices for signature.
  • Requests to reopen cases after discharge.
  • Suspected Offences Reports.
  • Matters relating to the resignation of Trustee or Agent. The AIB should be notified as soon as possible of pending resignations.
  • Requests for approval to accept Offer of Composition.

In exercising discretion, I ask you to approach the decisions needed as you would if you, personally, were the Permanent Trustee. For instance, by taking into account the constraints of having minimum or no funds in a case to pursue a particular course of action. I have a statutory duty to take reasonable actions to realise and ingather funds but only to the extent of the funds in hand. Where you think it is appropriate, and subject to my approval as necessary, legal advice should be sought on the prospects of success and if it is unlikely to be guaranteed then serious consideration must be given as to whether public funds should be risked. I would remind you that I am required to justify all Agency expenditure.

Despite earlier requests, AnnexK3 applications are still not being submitted in sufficient detail and additional work is still being carried out without prior approval. As a consequence I have decided that in future all deficient applications will be returned without comment and any claims for unauthorised work undertaken from the date of this letter will not be paid. There have also been recent claims for additional work done in some cases from 3 or more years ago. Claims for unauthorised additional work carried out more than 6months prior to the claim will no longer be met. If you have carried out what you consider to be additional work without prior authority over the last 6months and feel you can justify this please submit a reasoned claim within 3months of the date of this letter. After this date no claims for unauthorised work will be considered.

It has been our policy for some years to refuse nomination requests from Agents who failed to get nominated as Permanent Trustee at the statutory meeting of creditors, if the Accountant was specifically nominated as Interim Trustee in the petition. I have revisited this decision and am prepared to nominate regardless of my nomination in the petition.

Finally, as agents you are expected to comply in full with all current legislation concerning Money Laundering and the Proceeds of Crime. It is important that, when a case is returned to AIB requiring any additional work by ourselves the AIB Fraud Officer (Graeme Perry) is notified if any submission that has been made to the National Criminal Intelligence Service (NCIS) regarding the case.

Yours sincerely

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