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Technical Feedback

You will find here details of projects undertaken by the IPA and similar bodies to which IPA members are invited to contribute: CONSULTATION ON STATEMENTS OF INSOLVENCY PRACTICE 7 & 9

SIP7 – PRESENTATION OF FINANCIAL INFORMATION and TREATMENT OF EXPENSES IN INSOLVENCY PROCEEDINGS

SIP9 – PAYMENTS TO INSOLVENCY OFFICE HOLDERS AND THEIR ASSOCIATES

As part of the process of reviewing Statements of Insolvency Practice, the Joint Insolvency Committee consulted with the insolvency profession and others with an interest on adopting a new approach to their drafting.  That new approach is to set out principles which an insolvency practitioner should apply to particular aspects of a case, and then explain key compliance standards.

The responses received to the JIC’s initial consultation were supportive of the approach detailed above, and the JIC has now produced revisions of SIPs 7 and 9 as part of this ongoing process of revision.  These SIPs were reviewed concurrently, as it was identified that there was a particular need for coherence in their content. 

Wherever possible, all technical and legislative references have been removed from the SIP.  The reason for this is to future proof the SIPs and to avoid the need for administrative changes to be made to reflect changes in the law. This process has already been applied to SIP2 and the JIC plans to adopt this approach when looking at all the other SIPs.

Appendices:

The appendices to the SIPs are provided for guidance purposes and do not have regulatory force. 

The revised SIP7 now has an Appendix A: “Guidance On The Detailed Presentation Of Information In Office Holders’ Receipts And Payment Accounts”. 

SIP9 formerly had appendices A to D.  Appendix A contained extracts from the Insolvency Act 1986 and was suspended in April 2010, when legislative changes came into effect. The current SIP9 Appendices B and C (a re-statement of Schedule 6 of the Insolvency Rules 1986 and the Creditors’ Guides respectively) are now removed from the SIP itself. 

The existing Creditors’ Guides (issued April 2010) will continue to operate as “a suitable explanatory note setting out the rights of creditors” now referred to in both SIPs 7 and 9.  By removing the Creditors’ Guides from SIP9, they may in the future be referred to in other revised SIPs (where appropriate) and can be updated from time to time without the need for changes to the SIPs themselves.

SIP9 retains an updated version of Appendix D: “Suggested Format For Production of Information” (with revision where appropriate), which is re-named as Appendix A. 

Copies of the new SIPs are attached, together with two short questionnaires asking for your views. Please return these questionnaires by responding to this email or to the address stated below by 29 November 2010.

SIP 7 – Click here

SIP 7 Consultation Questionnaire – Click here

SIP 9 – Click here

SIP 9 Consultation Questionnaire – Click here