Consultation on revised SIP 15
The Joint Insolvency Committee is seeking views on a proposed revised Statement of Insolvency Practice which deals with an IP’s interaction with creditor committees or their equivalent.
The Joint Insolvency Committee (JIC) is consulting on a revised version of Statement of Insolvency Practice 15 - reporting and providing information on their functions to committees in formal insolvencies and SIP 15 (Scotland) - reporting and providing information on their functions to committees (and commissioners in sequestrations) in formal insolvencies.
The draft SIP has been developed by a JIC working group comprising members of the profession from firms of different sizes with views obtained from creditor representatives.
The current SIP 15’s date back to 2005 so the revised version of the SIP looks quite different from that which is currently in force. The main change is that the new draft acknowledges that creditors should be in a position to make an informed decision on whether they wish to seek nomination. It also recognises that information may be made available to creditors through a variety of mediums.
In revising SIP 15 the working group took the following approach:
- Adopting the principles and key compliance standards format used for all new SIPs;
- Removing all legislative references;
- Futureproofing the SIP by disentangling the information guides from the SIP itself.
In conjunction with R3, updated information guides for each of the insolvency processes have been developed and will be published at the same time the new SIP becomes effective.
It is intended that the revised SIP will apply UK wide. The consultation closes on 12 September 2016