Statements of Insolvency Practice are issued to licensed insolvency practitioners, and aim to maintain high standards in insolvency work.
Statements of Insolvency Practice (SIPs) are issued to licensed insolvency practitioners by the recognised professional bodies and the Insolvency Service, with a view to maintaining high standards in insolvency work. They set out basic principles and essential procedures with which insolvency practitioners are required to comply, ensuring a common approach to particular aspects of insolvency.
There are SIPs covering many subjects that are of interest to creditors and others as well as to insolvency practitioners, such as remuneration, work on voluntary arrangements and the use of pre-packaged insolvencies.
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: the seven recognised professional bodies and the Insolvency Service on behalf of the Secretary of State. They are produced by the Association of Business Recovery Professionals (R3) and are approved by the JIC and then adopted by each of the regulatory bodies.
SIPs are not definitive statements of the law. However, they stand alongside the legislation to promote consistency and professional standards among insolvency practitioners. Departure from the standards set out in a SIP is a matter that should be brought to the attention of a practitioner’s authorising body, and may result in disciplinary or other regulatory action.
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