The Joint Insolvency Committee (JIC) is consulting on the operation of the interim Statement of Insolvency Practice 6 (England & Wales) – decision making (SIP 6), which was published on 10 March 2017, effective from 6 April 2017.
The interim Statement of Insolvency Practice 6 superseded and replaced SIP 8, SIP 10 and SIP 12, in England and Wales only, from the effective date above. The equivalent SIPs in Scotland and Northern Ireland remain in force.
Background to the consultation
IPs are aware that legislative changes came into effect on 6 April 2017 with the commencement of the Insolvency (England & Wales) Rules 2016. The consequence of these legislative changes, particularly in relation to the way formal decisions of creditors are obtained, was the SIPs listed above (SIPs 8, 10 and 12) were no longer appropriate reflections of expected standards in light of the new legislation, and in some instances would have conflicted with the new law.
The interim SIP 6 was developed by a working party of the JIC comprising insolvency practitioners and representatives of HMRC and the Insolvency Service. The SIP was approved by the authorising bodies on an interim basis, without the usual public consultation. This was due to the time constraints of the Rules implementation and the need to ensure that practitioners continued to have an appropriate regulatory framework in which to work, effective from the implementation date of the new Rules. Therefore, the SIP was issued on an interim basis, with the stated intention that there would be a consultation so that the SIP could be reviewed and amended (if necessary) and subsequently issued in its final form on or around 31 December 2017.
The following approach was used in developing SIP 6:
Letting us know your views
ICAEW licensed IPs will have already received an email alerting them to the launch of the consultation on SIP 6. You can access the consultation draft of SIP 6 (which is the same version of the SIP that is currently in force) and the forms to submit a response here.
The consultation closes on 13 October 2017.