SIP 3.3 consultation

IPA Insolvency Practitioner newsletter, April 2023

Contents

• Paul Smith, CEO
• Samantha Keen, President
• HMRC updates
• FCA warnings: Unauthorised websites
• A fantastic day at the 2023 Annual Conference – thanks to all delegates, speakers and sponsors!
• Latest Developments in Personal Insolvency: New SIP 3.1 and What this Means for You (CPD: 1.5h)
• 2023 Roadshow Series schedule released – reserve your place now! (CPD: 3h/4h)
• Bookings are open for the 15th Personal Insolvency Conference (CPD: 6h)
• IPA examinations update
• Discounted meeting facilities from Office Space in Town (member login required to view)
• Save money on your airport parking with APH! (Member login required to view)
• Need new IT products? Claim exclusive IPA membership offers from Dell
• CPI training with BPP – special offer for IPA members (member login required to view)
• Make savings on essential CPD with exclusive discounts on training from the IPA and our partners
• IPA exclusive industry update from Insolvency Insider

A working group of the Joint Insolvency Committee (JIC) has been reviewing Statement of Insolvency Practice 3.3 – Trust Deeds (SIP 3.3) and are now inviting comments on the revised SIP. The working group was comprised of insolvency professionals and other stakeholders in the trust deed process including the Accountant in Bankruptcy.

The JIC decided to review the SIP because many of the issues which were relevant to the recently revised SIP 3.1 (Individual Voluntary Arrangements) apply equally to SIP 3.3 and because of matters raised within the context of the Scottish Parliament’s enquiry into Protected Trust Deeds and the subsequent Scottish Government response. SIP 3.3 was last issued in 2014.

The following is a summary of the key changes between the existent SIP 3.3 and the revised SIP 3.3:

• The principles, key compliance standards and standards of specific application have been harmonised with SIP 3.1 as far as practicable, subject to amendments required to take account of Scots law, trust deed procedures, appropriate terminology, etc.

• The language has been simplified, made gender neutral and updated in line with JIC drafting guidance.

• It was felt appropriate to retain the SIP’s application to all trust deeds and not just protected trust deeds. The application of certain paragraphs to PTDs and unprotected trust deeds has been clarified.

• Restatement of legislative provisions have been removed as far as possible.

• 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 following comparisons are available to help with identification of changes between the current SIP 3.3 and the revised version and also as a read across against the recently issued SIP 3.1

SIP 3.3 (2014) to draft SIP 3.3           https://draftable.com/compare/xRXNHztjrjOu

SIP 3.1 (2023) to draft SIP 3.3           https://draftable.com/compare/KWXXlRkcIgTS

The consultation on the revised SIP 3.3 is open until 23:59 on 10 July 2023. Please use this form to complete your response to the consultation, and submit your response to consultations@ipa.uk.com.