These legislative changes mean that changes need to be made to Statement of Insolvency Practice 16 (SIP 16) – pre packaged sales in administrations, and additionally the Statement of Insolvency Practice 13 (SIP 13) - disposal of assets to connected parties in an insolvency process, also need to be changed to align the content of the standards with the law in Northern Ireland. No changes have been made to the SIPs other than those required by the change in the law.
Going forward SIP 13 and SIP 16 will apply thorough the United Kingdom albeit with a different ‘Effective from’ dates, (30 April 2021 in England, Wales and Scotland and 25 June 2021 in Northern Ireland) and with legislative references relevant to the jurisdiction for the definition of connected parties - paragraph 60(A)(3) of Schedule B1 to the Insolvency Act 1986 in England, Wales and Scotland and for Northern Ireland, paragraph 61A(3) of Schedule B1 to the Insolvency (Northern Ireland) Order 1989.
The effective dates for the revised SIPs 13 and 16 are:
25 June 2021 - Northern Ireland