Trust Deed Administrators and Insolvency Practitioners with Accountant in Bankruptcy (AiB) : FOI release

FOI reference: FOI/18/03132  
Date received: 29 October 2018 
Date responded: 20 November 2018

 

 

Which Trust Deed Administrators and Insolvency Practitioners have a relationship with the Accountant in Bankruptcy (AiB) and if so what is that relationship and what do the Trust Deed Administrators and Insolvency Practitioners do for the AiB?

 

Response

 

1.   The AiB’s relationship with trustees is defined in Section 200 of the Bankruptcy (Scotland) Act 2016 (‘the Act’).  AiB’s statutory duty is to supervise the performance of all interim trustees and trustees in Scottish sequestrations and protected trust deeds (PTDs). All IPs taking appointments in personal insolvency will, to some extent, have a relationship with AiB. For example, AiB is responsible for auditing the fees of those IPs taking appointments in personal bankruptcy cases, and AiB receives statutory fees from all trustees administering PTDs to meet the costs of AiB’s supervision functions.    

The number of PTDs, by firm, is set out in table 21 of our annual report, that you can read here:

2.   AiB is the appointed administrator of the Debt Arrangement Scheme (DAS).  As the DAS administrator, AiB has a relationship with those Insolvency Practitioners (IPs) who act as money advisers, continuing money advisers and payment distributors, as specified in the DAS (Scotland) Regulations 2011.
For DAS Debt Payment Programmes (DPPs), there is a panel of organisations who undertake the payment distribution process. They act on behalf of the debtor in the collection and payment of funds from the debtor to their creditors.
Carrington Dean, Walker Love Payments Distributors, StepChange and Gregory Pennington/Wilson Andrews are the payment distributor organisations on this panel.

Details of the payment distributors currently appointed by AiB are on our website here.

Please note that this webpage is under review and does not record the current Carrington Dean Group business address.

 

3.   Section 201(2) of the Act makes provision for AiB to appoint any person considered fit to act on AiB’s behalf in respect of the sequestration of any debtor. AiB has contracted out some insolvency work to the following firms, under four separate contracts. Each firm acts on behalf of AiB where AiB is appointed trustee.

Contracts 1, 2 and 3: Wylie & Bisset
Contracts 2 and 3: Dunedin Advisory Limited (previously known as Insolvency Support Services (ISS))
Contract 1 and 2: KPMG
Contract 1: Armstrong Watson and Hastings & Co
“Agency Contract”: Stirling Toner

The AiB contracts do not require that a specific IP is assigned to the contract, but the Contract Manager of each firm is a qualified IP:
Wylie & Bisset
Dunedin Advisory Ltd
KPMG
Armstrong Watson
Hastings & Co

We therefore work with these IPs as the dedicated Contract Manager within each  of their firms.
Further information regarding AiB’s contracted out insolvency services can be found on our website here.

Please note that this webpage is currently under review and some updates are required.

4.   Insolvency Support Services are commissioned to provide formal insolvency training to AiB staff.

 

5.   AiB chairs a number of working groups, advisory committees and boards whose membership includes IPs, representatives of insolvency firms and representatives from the IPs’ Recognised Professional Bodies (RPBs). 
Details of these groups and committees is on our website here and here.

Membership of these committees and groups can change, but IPs are currently represented on the following:

AiB’s Advisory Board
The Advisory Board assists and advises the Accountant in Bankruptcy/Chief Executive on how Ministers' policies can most effectively be delivered.
IP Board member:
Bryan Jackson (IP) – Non executive board member
Details about the AiB Advisory Board can be found on our website here.

Debt and Insolvency Services Stakeholder Forum (DISSF)
DISSF represents the AiB's broad stakeholder base from the money advice sector, insolvency, law, finance and banking, local authority and sister government  departments to ensure we are listening and working with those impacted by the work of  AiB.
RPB and IP Forum members:
David Menzies (IP) – Institute of Chartered Accountants Scotland
Maureen Leslie (IP) – MLM CPS Ltd
Details about the DISSF can be found on our website here.

DAS Review Board
The DAS Review Board is a high level strategic level Board which includes membership of our key DAS stakeholder groups.  Payment  distributors attend the  DAS review board meetings on a rota basis with one payment distributor  representative at the meetings at any one time. More details about this board can be  found here. 

RPB Board members:
Maureen Leslie (IP) – Represents IPA
Nicola Teader (IP) – Represents ICAEW

DAS Working Group
This short term working group was created to reach the maximum amount of key stakeholders in the DAS space and those most engaged with policy discussions at  our annual stakeholder events and prior consultations.  Full details of the working  group, its membership, minutes of meetings and discussion papers can be found on  the AiB website here.

IP Group members

Nicola Teader (IP) – Pinnacle

Colin Murdoch (IP) – Murray Stewart Fraser Ltd

Representatives from the firms of Carrington Dean, Payplan and Grant Thornton

PTD Standing Committee
Act as a discussion forum to share information and guidance and identify areas of concern arising from the administration of PTDs.
IP Committee members:
Barry Stewart (IP) – 180 Advisory Solutions
Graham McLeod (Non IP) – Carrington Dean
Eileen Maclean (IP) – Insolvency Support Services
Andrew Wilkinson (IP) – Campbell Wallace Fraser
Details about the PTD Standing Committee can be found on our website here.

Bankruptcy Stakeholder Group
This Group acts as a discussion forum to share information and guidance and identify areas of concern arising from the administration of bankruptcy.
RPB Group members: 
Lynne Flower  - representing ICAS
Blair Milne – representing ICAS
Eileen Maclean – representing R3/IPA
Barry Stewart – representing R3
James Stephen – representing ICAEW
Policy and Cases Committee
Provides AiB with views and advice on challenging cases and policy issues.
IP Committee members:
Bryan Jackson (IP)
Lynne Flower (IP) - KPMG
Donald McKinnon (IP) - Wylie and Bisset
Eileen Maclean (IP) - Insolvency Support Services
Details about the Policy and Cases Committee can be found on our website here.

Independent Review Panel
Provides AiB with views and advice only on bankruptcy reviews which have been completed by AiB.
IP and RPB Panel members:
Bryan Jackson (IP)
David Menzies (ICAS)
Eileen Maclean – representing R3

Common Financial Tool (CFT) Working Group
Develops and approves the AiB CFT Guidance.  Membership comprises of representatives from AiB, Citizens Advice Scotland, Money Advice Trust, Money Advice Service, IP Recognised Professional Bodies, StepChange, Creditor Organisations and the Association of British Credit Unions.
RPB Group members:
David Menzies (ICAS)
Barry Mochan – representing IPA

Corporate Insolvency Working Group
The Corporate Insolvency Working Group has been established to assist in the programme of work to modernise and consolidate the corporate insolvency rules in Scotland. This project is being led by both AiB and the UK Insolvency Service as corporate insolvency processes span areas that are both reserved to the UK Parliament and devolved to the Scottish Parliament. The working group comprises IPs who represent their RPBs and the R3 Association of Business Recovery Professionals and other stakeholders including the Law Society of Scotland, Companies House and the Institute of Credit Management.
David Menzies (IP) – ICAS
Eileen Blackburn (IP) – ICAS
Maureen Leslie (IP) - IPA

As advised, membership of AiB’s Groups, committees and Panels can change and we try to keep the AiB website up-to-date. However, there can be delays in updating information.

 

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