QAD's SIP tips
QAD continues to see surprising numbers of SIP defaults. And it’s perhaps more disappointing to hear many IPs say that SIPs are ‘only guidance’.
Regulation 3.9 of ICAEW’s Insolvency Regulations and Guidance requires IPs to comply with the SIPs. IPs will be aware that SIP 1 was revised with effect from 1 October 2015 and paragraph 6 says that ‘SIPs set principles and key compliance standards with which insolvency practitioners are required to comply. Failure to observe the principles and / or maintain the standards set out in a SIP is a matter that may be considered by a practitioner’s regulatory authority for the purposes of disciplinary or regulatory action’.
Alison Morgan, QAD’s insolvency manager, outlines below some key issues in relation to SIPs 11, 3.1 and 3,2, SIP 6 and SIP 14.