Revised SIP 15 issued
A revised SIP 15 relating to creditor committees in insolvency processes has been issued. David Menzies looks at changes to requirements brought in through the revised SIP.
A revised version of Statement of Insolvency Practice 15 (SIP 15) – Reporting and providing information on their functions to committees and commissioners, effective from 1 March 2017, has been issued by each of the Recognised Professional Bodies.
The new SIP 15 was been developed by a working party of the Joint Insolvency Committee, adopting the principles and key compliance standards format used for all new SIPs, and was subject to a public consultation process in 2016.
The SIP applies to office holders in all insolvency processes. Following consultation feedback, the SIP will also apply to IPs providing advice or assistance to directors in connection with the appointment of a liquidator in a creditors’ voluntary liquidation.
The SIP requires information on the role, function and duties of a committee to be available to creditors prior to them considering nomination to a committee. The drafting of the SIP issued for consultation implied that it was necessary to issue information to creditors prior to nomination and after the committee had been established. The revised SIP has been amended to clarify that information need only be made available to creditors prior to nomination’s being invited for committee members.
The SIP has also been future-proofed by disentangling the creditor information guides from the SIP itself. While IPs can make available information to creditors in their own style and using any medium of communication, R3 have published “Liquidation/Creditors’ Committees and Commissioners – A Guide for Creditors” which may be used to provide information to creditors.
The new SIP 15 will come into effect on 1 March 2017, for cases started on or after that date and will apply UK wide.