Statements of Insolvency Practice Scotland
This foreword explains the scope and authority of Statements of Insolvency Practice (SIPs). It should be read in conjunction with the individual SIPs to which it forms a collective preface.
SIPs are issued with a view to maintaining standards by setting out required practice and by harmonising practitioners' approach to particular aspects of insolvency.
SIPs are issued under procedures agreed between the insolvency regulatory authorities acting through the Joint Insolvency Committee (JIC). They are produced by R3 (the Association of Business Recovery Professionals) and subsequently approved by the JIC and adopted by each of the regulatory authorities listed below:
Recognised Professional Bodies
- Association of Chartered Certified Accountants
- Insolvency Practitioners Association
- Institute of Chartered Accountants in England and Wales
- Institute of Chartered Accountants in Ireland
- Institute of Chartered Accountants of Scotland
- Law Society
- Law Society of Scotland
- The Insolvency Service (for the Secretary of State for Trade and Industry)
The purpose of SIPs is to set out basic principles and essential procedures with which insolvency practitioners are required to comply. Departure from the standard(s) set out in SIPs is a matter that will be considered by a practitioner's regulatory authority for the purposes of possible disciplinary or regulatory action.
ACCA members who carry out insolvency work under the Insolvency Act 1986 (as amended) are required to follow the requirements of SIPs.
When carrying out insolvency procedures in Scotland or under Scottish legislation, members are required to observe the requirements of the Scottish variant versions of SIPs which have been approved by JIC.
SIPs should not be relied upon as definitive statements of the law.
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