Revised SIP 13 issued
A revised Statement of Insolvency Practice relating to the disposal of assets to connected parties in an insolvency process has been issued and comes into effect on 1 December 2016.
A revised version of Statement of Insolvency Practice 13 (SIP 13) - disposal of assets to connected parties in an insolvency process has been issued today by all of the Recognised Professional Bodies responsible for the regulation of insolvency practitioners.
The new SIP 13 was developed by a working party of the Joint Insolvency Committee, comprising insolvency practitioners and creditor representatives and was subject to a public consultation process earlier in 2016.
The SIP adopts the principles and key compliance standards format used for all new SIPs.
The new SIP 13 will apply to connected party transactions in both corporate and personal insolvency, but as a result of feedback received during the consultation process, it will not apply to members‘ voluntary liquidations.
The requirements of the SIP have been drafted in a proportionate way and without being onerous, recognising that it may apply to low value transactions. The SIP focuses on providing a narrative explanation of the transaction rather than prescribing the information which should be disclosed.
The SIP uses (wherever possible) language which is consistent with SIP 16 and all legislative references have been removed except for the definition of connected party.
The new SIP 13 come into effect on 1 December 2016, for cases started after that date and applies UK wide.
The new SIP 13 can be accessed here.