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Enforcement Administrators

Proceeds of Crime - Confiscation Orders

    
What is an Enforcement Administrator

When an individual is convicted of a crime where they have benefited financially from their illegal actions, the Crown are entitled to seek recovery of any proceeds of their crimes. The Crown will normally apply to the Court for a Confiscation Order which details how much must be repaid.

Where an individual is either unable or unwilling to repay a Confiscation Order then the Court can appoint an Enforcement Administrator (or Administrator) to take control and realise assets in order to repay any sums due under the Confiscation Order.    
 

The Appointment Process  
             

An application for the appointment of an Enforcement Administrator will be made by the Crown Office to either the Court of Session or the Sheriff Court.

Upon receipt of a new application, the relevant Court will grant warrant to have the application intimated on anyone that they consider have an interest in the case/estate. This allows parties the opportunity to object to the application or make such representations as may assist the Court in making an appointment.

At this time the Accountant of Court will also be notified of the application, and will set Caution (a form of insurance insert link to caution section of website). The Administrator will obtain same (within a calendar month of their appointment) at which point the Court will issue a Certified Copy of the Court Interlocutor (CCI) which will allow the Administrator to begin realising the estate.

 

The AoC Role                                   

The Accountant of Court has a supervisory role in all Proceeds of Crime cases. This will include the review and approval of the Inventory of Estate and the accounts which are prepared and submitted on a six monthly basis.

The Accountant of Court is also responsible setting the Administrator’s commission in each case.

The Accountant of Court will offer assistance to an Administrator to assist them in bringing the case to a conclusion, and will deal with any complaints or concerns raised about the Administrator throughout the lifetime of the case.


The Administrator’s Role    
           

Whilst the powers granted to an Administrator are similar to those granted to a Judicial Factor, the scope of an Administrator’s appointment is much narrower. Their primary concern is to realise such assets, as are needed, to settle the balance remaining on the original confiscation order together with any accrued interest.

Having taken the estate under their control, an Administrator is required to submit an Inventory of Estate to the Accountant of Court within 3 months of their appointment.

An Administrator may thereafter undertake a variety of actions in order to allow them to realise assets, including but not restricted to:

Whilst the case is ongoing an Administrator is required to lodge accounts on a six monthly basis, which are audited by the Accountant of Court.

Once all of the assets have been realised, the Administrator will settle the outstanding confiscation order then apply for their discharge.
 

Caution

Caution (pronounced “kayshun”) is a form of insurance that will reimburse the estate in the event of any financial loss, as a result of the Judicial Factor/Enforcement Administrator’s mismanagement.

A Bond of Caution can be obtained from the following providers:

  • Royal & Sun Alliance
  • Insolvency Risk Specialists

This list is not exhaustive, other bond providers may be available.

 

Case Volumes

The following general statistical information, describes the number of registered orders subject to the supervision of the Accountant of Court as at the end of each calendar year.

 
 YEAR OPEN CASES NEW CASES IN YEAR   PENDING APPLICATIONS
 2016  46  23  3
 2017  60  14  15

  

Fees

There are various fees payable for submitting documentation to the Accountant of Court, at different stages of this process. The fees are in correlation to those due in a judicial factory case. For further information please see the Judicial Factors section of this website or alternatively follow this link (here).

 
Commission

The Accountant of Court reviews and sets the level of commission (remuneration) payable to Administrators, on an annual basis. These rates are in line with those payable to a Judicial Factor.

The hourly rate for the commission paid to an Administrator takes account of their professional qualifications, experience and the hourly rate which would routinely be paid to them in the exercise of their normal duties (for example as a Solicitor or Accountant).

Annual increases will reflect increases to this amount, as well as current rates of inflation.

The hourly rates payable (from 1 April 2018) are:

  • Partner - £246.84

  • Manager - £178.50

  • Support Staff - £89.25

  

The Legislation

An Enforcement Administrator (or Administrator) is appointed by the Court under Part 3 of the Proceeds of Crime Act 2002 (here) following the making of a Confiscation Order.

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