Revised Statement of Insolvency Practice 3.3 (Scotland) – trust deeds
Under the Joint Insolvency Committee’s (JIC’s) strategic work plan, statements of insolvency practice (SIPs) are subject to periodic review to ensure they remain relevant to changing legislation and market conditions.
A revised SIP 3.3 relating to trust deeds has been issued following the work of a JIC working group and the approval of each of the Recognised Professional Bodies (RPBs).
Following consultation with the profession, the revised version of SIP 3.3 has now been approved by the JIC for implementation with effect from 1 November 2023.
Summary of changes
The principal changes in the revised SIP 3.3 relate to the principles, key compliance standards and standards of specific application being, as far as practicable, harmonised with the recently revised SIP 3.1 relating to individual voluntary arrangements. However, the amendments take account of Scots law, trust deed procedures, appropriate terminology, etc.
The language of the SIP has also been simplified, made gender-neutral and updated in line with JIC drafting guidance.
The application of certain paragraphs to PTDs and unprotected trust deeds has been clarified and restatements of legislative provisions have been removed as far as possible.
Finally, 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 changes are set out in the comparison between the revised version and the current (2014) version of SIP 3.3.
The revised SIP 3.3 applies to trust deeds signed on or after 1 November 2023.