Consultation on SIP 3.3 – Trust Deeds
A working group of the Joint Insolvency Committee (JIC) has been reviewing Statement of Insolvency Practice 3.3 – Trust Deeds (SIP 3.3) and are now inviting comments on the revised SIP.
The JIC undertook a consultation, issued in May 2020, which included revisions to SIP 3.1. At that time the revisions had been identified as being relevant changes as part of a review of SIP 3.2 on Company Voluntary Arrangements. No detailed review of SIP 3.1 was carried out at that time. This consultation builds on the work carried out in 2020 and the draft revised SIP 3.1 now being consulted on follows a detailed review of SIP 3.1.
The working group was comprised of insolvency professionals and other stakeholders in the trust deed process, including the Accountant in Bankruptcy.
The JIC decided to review the SIP because many of the issues which were relevant to the recently revised SIP 3.1 (Individual Voluntary Arrangements) apply equally to SIP 3.3 and because of matters raised within the context of the Scottish Parliament’s inquiry into Protected Trust Deeds and the subsequent Scottish Government response. SIP 3.3 was last issued in 2014.
The following is a summary of the key changes between the existent SIP 3.3 and the revised SIP 3.3:
- The principles, key compliance standards and standards of specific application have been harmonised with SIP 3.1 as far as practicable, subject to amendments required to take account of Scots law, trust deed procedures, appropriate terminology, etc.
- The language has been simplified, made gender -neutral and updated in line with JIC drafting guidance.
- It was felt appropriate to retain the SIP’s application to all trust deeds and not just protected trust deeds. The application of certain paragraphs to PTDs and unprotected trust deeds has been clarified.
- Restatements of legislative provisions have been removed as far as possible.
- The key elements of the Accountant in Bankruptcy’s PTD Protocol have been incorporated. As the SIP is principles-based, these are not incorporated using the same style/wording/process, but the underlying principles and standards are consistent and will bring regulatory force to the Protocol requirements.
The following comparisons are available to help with the identification of changes between the current SIP 3.3 and the revised version and also as a read-across against the recently issued SIP 3.1
The consultation on the revised SIP 3.3 is open until 10 July 2023.