Proposed changes to SIP14: A Receiver’s Responsibility to Preferential Creditors

SIP 14 was last updated in 1999, and since that time, there have been considerable changes in insolvency legislation and practice. These changes have transformed not only receiverships, rendering administrative receivership almost redundant, but also the nature of preferential creditors, first with the removal of Crown preference in 2003 and then, to an extent, its restoration, in the form of secondary preferential status for certain HMRC claims, in 2020.

A working group of the JIC was therefore established to review SIP 14. The working group was comprised of insolvency professionals, representatives of the recognised professional bodies, a leading academic and HMRC.

The principal changes proposed are:

1. Revisions to clarify that the scope of the SIP covered all types of insolvency appointment, not just Administrative Receivers
2. Revised opening paragraphs and introduction
3. Inclusion of a table of contents
4. Introduction of the modern structure of a SIP including sections for Principles, Key Compliance Standards and Provisions of General Application
5. Removal of the summaries of statutory provisions
6. Rewording to include Scotland and Northern Ireland

You can see the full details of the proposed changes below:

• View the proposed revised SIP
• View a comparison with the version of the SIP currently in force

The consultation will be open for a period of twelve weeks, closing on 5 September 2025.

The JIC is now seeking your views on the proposed changes to SIP 14 and there is an opportunity in the consultation questionnaire to suggest other changes to SIP 14.

• Read the full consultation document and respond

The JIC recognises that whilst these are extensive modifications, they are, however, only proposed changes. There is no intention to amend the SIP without careful consideration of the responses received and any plan to introduce changes will take into account any continuing challenges faced by the insolvency profession.

The proposed revised SIP 14 will apply in England and Wales, Scotland and Northern Ireland and will replace the individual SIP 14s which apply in each jurisdiction.