New SIPs for IVAs, CVAs and trust deeds

What are the important features of the latest Statement of Insolvency Practice 3 (SIP)? To accompany the release of the SIP, Alison Curry, head of regulatory standards at the Insolvency Practitioners Association (IPA), has released the IPA’s email to their members explaining the implications of the new SIP 3 covering voluntary agreements.

Original News

New Statement of Insolvency Practice (SIP) 3 released
On 1 June 2014 the Joint Insolvency Committee released a new SIP 3 relating to voluntary arrangements and trust deeds.

How has the new SIP 3 amended the old SIP?

Individual voluntary agreements and company voluntary agreements are now subject to separate SIPs, both of which adopt the principles based approach, supported by key compliance standards. Previously they both fell under the one SIP.

When does the new SIP come into force?

This new SIP 3 will be effective as of 1 July 2014, and will apply to appointments commencing on or after that date. The existing SIPs will continue to apply to appointments commenced prior to the effective date.

The IPA, the regulatory body, have issued a letter to their members with some guidance on this issue, which is set out here for some additional guidance. See

Email issued to IPA members

Eleanor Stephens, solicitor in the Lexis®PSL Restructuring & Insolvency team.

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