The new SIP 13 was been developed by a working party of the Joint Insolvency Committee, comprising insolvency practitioners and creditor representatives and was subject to a public consultation process earlier in 2016.
The following approach has been used in revising the SIP:
- the new SIP 13 will apply to connected party transactions in both corporate and personal insolvency, but as a result of feedback received during the consultation process, it will not apply to members ‘ voluntary liquidations.
- SIP 13 has been drafted in a proportionate way and without being onerous, recognising that it may apply to low value transactions.
- the SIP focuses on providing a narrative explanation of the transaction rather than prescribing the information which should be disclosed.
- the SIP adopts the principles and key compliance standards format used for all new SIPs.
- all legislative references have been removed with the exception of the definition of connected party.
- the SIP uses (wherever possible) language which is consistent with SIP 16.
The new SIP 13 will come into effect on 1 December 2016, for cases started after that date. This SIP will apply UK wide.