Reminder: Introduction of the revised SIP 3.3 (Scotland) – Trust Deeds
IPA Insolvency Practitioner newsletter, October 2023
Under the Joint Insolvency Committee (JIC) 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 was issued by each of the Recognised Professional Bodies (RPBs) on 27 September 2023.
The revised SIP was approved by JIC and each of the RPBs following consultation with the profession and wider sector stakeholders.
Summary of Changes
The main 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 taking 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 Protected Trust Deeds 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 and process, but the underlying principles and standards are consistent and will bring regulatory force to the Protocol requirements.
The revised SIP 3.3 applies to Trust Deeds signed on or after 1 November 2023.