Panos Eliades Franklin & Co’s policy in respect of fees and expenses for work in relation to insolvency appointments is set out below.
Current charge-out rates per hour for staff within the practice who may be involved in working on an insolvency appointment are as follows:
|Grade||Rate effective from 1 January 2017|
These charge-out rates are reviewed on 1 January each year and are adjusted to take account of inflation and the firm’s overheads.
Time spent on casework is recorded directly to the relevant case using a computerised time recording system and the nature of the work undertaken is recorded at that time. Each unit of time is 6 minutes. The work is recorded under the following categories:
- Administration and Planning
- Realisation of Assets
- Case-specific matters
Remuneration invoiced to the insolvent estate is subject to VAT at the prevailing rate.
Where remuneration has been approved on a time cost basis, information wil be provided in periodic reports to any committee appointed by creditors and to the creditors to show a breakdown of the remuneration drawn and time costs incurred and will also enable the recipients to see the charge-out rates applied and the average hourly rates of such costs.
These are re-charged to the insolvent estate at cost based upon the charge made by the Agent instructed. The term Agent includes:
- Quantity Surveyors
- Estate Agents
- Other Specialist Advisors
Where expenses are incurred in respect of the insolvent estate they will be recharged. Such expenses can be divided into two categories.
These are payments to independent third parties where there is a specific expenditure directly referable to the appointment in question. Category 1 disbursements can be drawn without prior approval, although an office holder should be prepared to disclose information about them in the same way as any other expenses.
These are expenses that are directly referable to the appointment in question but not to a payment to an independent third party. They may include shared or allocated costs that may be incurred by the office holder or their firm, and that can be allocated to the appointment on a proper and reasonable basis. Category 2 disbursements require approval in the same manner as an office holder’s remuneration. When seeking approval, an office holder should explain, for each category of cost, the basis on which the charge is being made. If an office holder has obtained approval for the basis of Category 2 disbursements, that basis may continue to be used in a sequential appointment where further approval of the basis of remuneration is not required, or where the office holder is replaced.