This information note is intended to detail CIAT's policy on members becoming bankrupt or insolvent in relation to the Institute's current Constitution. Responsibilities under the Code of Conduct effective 1 May 2010 Clause 10: Bankruptcy and Insolvency A member shall report to the Institute within 28- days, 35- days if resident overseas, if they are: a) made the subject of an order of court disqualifying them from acting as a company director; b) made the subject of a bankruptcy order; and c) a director of a company which is wound up ( other than for amalgamation or reconstruction purposes) If you are the subject of a bankruptcy order or become insolvent you are required to advise the Institute in writing within 28- days detailing the circumstances with any supporting documentation as appropriate. If you are declared bankrupt, or you are a director or LLP member of an insolvent company or practice, this will not automatically lead to disciplinary action or permanent cessation of membership, although it is likely that you will not be permitted to be a director or LLP member until the terms of your bankruptcy have been discharged. The Institute will however require information on the circumstances surrounding your financial situation, for example, its impact on your clients and creditors and how the financial problems arose. If your practice has been placed into liquidation, we may ask for the Company's Statement of Affairs. It is only when our investigations suggest there may have been a wilful disregard by a member of their responsibilities, or a lack of integrity in line with the Institute's Code of Conduct, that the case may fall within the Conduct and Disciplinary Procedures; you would be notified formally in writing as per the Procedures. Professional Indemnity Insurance The availability of ongoing or run- off professional indemnity insurance cover ( where the practice has ceased) may vary according to the particular situation. Members should take advice from their insurance broker or provider, or an insolvency practitioner, on any steps that can be taken to continue PII. CIAT Insurance Services state that the issue is whether the premium has been paid, rather than whether or not the existing policy- holder has been declared bankrupt. If the member has paid the premium, the policy will remain in force until it expires thereafter CIAT Insurance Services would recommend run- off cover when it comes up for renewal should the member be unable to continue to practice; this is the standard procedure for any member who ceases to provide a service. Should CIAT Insurance Services be approached to provide cover for a member who has been declared bankrupt, they would operate in the usual way. However, the only possible issues might be with obtaining premium finance should the member wish to pay by instalments, and CIAT Insurance Services would require payment in advance or the individual would need to make arrangements for their own finance of the premium. Insurers may ask for reasons of the bankruptcy but this should not affect any provision of cover offered unless the reason for such bankruptcy has emanated from a fraudulent or dishonest act. Should you be covered with another insurance provider, you should check their terms and policy requirements. General Advice For those who are facing financial difficulties, help and advice is available from a number of sources. Seeking help at an early stage is both constructive and beneficial, and ensures that the range of options available can be fully explored. The Insolvency Service ( www. insolvency. gov. uk) provides general guidance, and we would also encourage members to seek professional advice from their accountant, Citizens' Advice Bureau or bank before deciding on the most appropriate way forward. The Institute also has a Recession Advice section on its website visit www. ciat. org. uk/ en/ recession Boom and bust The current financial climate has caused problems for many involved in the construction industry, and bankruptcy is no longer as unusual as it once was. Here we guide you through CIAT's policy on members' bankruptcy and insolvency. ATMARCH- APRIL2010 9 FINANCE Alex Yeung@ fotolia. com

Established in 1995, CSCS has developed significantly over the years. It now covers almost 400 occupations and there are over 1.5 million current CSCS cards. It works closely with a wide range of professional bodies including CIAT to ensure it provides a Scheme that meets the needs of their members as well as the contractors and clients they work with. Going Smart The start of 2010 saw a major improvement to the Scheme with the introduction of a SmartCard. This will bring a number of benefits to the industry all focussed on increasing safety, security and efficiency on construction sites. Whilst CSCS cards have always helped address these issues by displaying qualifications and competencies, there has been a rise in the number of fraudulent cards. This has the potential to put contractors and clients in danger of having unqualified or illegal workers on their sites with the associated health and safety risks. By introducing SmartCards, CSCS is making it simpler and quicker to check that a card is current and belongs to the person who is showing it. CSCS SmartCards are like the traditional cards in that information about the holder and their photograph is printed on it. However, the same data is also stored in a smart chip embedded in the card. The introduction of SmartCards also brought with it the advent of new designs for the cards to bring greater consistency and a more modern look. Other benefits that smart technology brings include: . enabling some information to be updated by computer without the need to apply for a new card . storing non- CSCS data by installing a simple computer program called an applet on to the chip. Organisations such as trade associations, contractors, clients or professional practices will be able to purchase applet licences to add their individual software requirements to the SmartCards. CSCS is also considering how it may work On the cards Brian Adams, Chief Executive of the Construction Skills Certification Scheme, provides an update on the Scheme for members of CIAT. 10 ATMARCH- APRIL2010 CSCS Right: What's in your wallet?