Statements of Insolvency Practice (SIPs)—a quick guide

The following Restructuring & Insolvency practice note provides comprehensive and up to date legal information covering:

  • Statements of Insolvency Practice (SIPs)—a quick guide
  • What are Statements of Insolvency Practice?
  • Current SIPs in effect in England & Wales
  • SIPs previously in effect in England & Wales
  • Creditors’ guides
  • Changes to SIPs 3.2, 7 and 9
  • SIP 3.2—Company voluntary arrangements
  • SIP 9—Payments to insolvency office-holders and their associates from an estate
  • SIP 7—Presentation of financial information in insolvency proceedings
  • Changes to SIP 13, 16 and the withdrawal of SIP 4
  • More...

Statements of Insolvency Practice (SIPs)—a quick guide

What are Statements of Insolvency Practice?

Insolvency practitioners (IPs) are required to comply with both legislation and Statements of Insolvency Practice (SIPs). SIPs are a series of guidance notes. The purpose of a SIP is to promote and maintain high standards by setting out required practice and by harmonising the approach of IPs to particular aspects of insolvency practice in England and Wales, Scotland, and Northern Ireland. Failure to comply with the required standards, legislation or with SIPs may result in disciplinary action against an IP being taken by their relevant authorising body.

SIPs are commissioned by the Joint Insolvency Committee (JIC), which is made up of representatives from each of the bodies responsible for the authorisation and regulation of insolvency practitioners (these are the four recognised professional bodies (RPBs) and the Insolvency Service on behalf of the Secretary of State for Business, Energy & Industrial Strategy—the four RPBs are the Insolvency Practitioners Association (IPA), the Institute of Chartered Accountants in England and Wales (ICAEW), the Institute of Chartered Accountants in Scotland (ICAS), and the Institute of Chartered Accountants in Ireland (ICAI)). The JIC also has three lay members: HM Revenue and Customs, the Association of British Insurers, and the British Property Federation.

IPs should also comply with the Insolvency Practitioners’ Handbook and the Insolvency Code of Ethics.

Current SIPs in effect

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