Protected trust deeds: improving the process consultation

2. Scope of the Guidance

2.1 The Guidance provides a standard framework for dealing with PTDs and applies to both Insolvency Practitioners ( IPs), when acting as trustees for PTDs, and creditors. Under the terms of the Guidance, trustees and creditors agree to follow the processes and agreed documentation that forms the Guidance. Trustees will adhere to the terms of the Guidance in drawing up the terms of the trust deed and protection request based on the standard documentation with written confirmation that it follows the Guidance. There is an expectation that creditors would generally agree to the protection of a trust deed that conforms with the terms of the Guidance.

2.2 Trustees must make every effort to comply with the Guidance. In exceptional circumstances there may be scenarios where the terms of trust deed do not fully comply with the Guidance. In these circumstances the trustee must provide an explanation to the creditors to detail why they have adopted a different approach.

2.3 The following organisations have been asked to indicate their support for the Guidance process

Drafters Note. Creditor organisations will be contacted prior to publication of the Guidance. The list of creditor organisations will be published on the AiB website.

2.4 The Guidance does not override the regulatory requirements that must be met by all trustees when administering a PTD.

2.5 For the avoidance of doubt, trustee means individuals who are authorised to act as IPs in the United Kingdom by an authorised body. References to creditor in this Guidance refer to both creditors and the agents who vote on their behalf and act in accordance with their instructions in relation to a PTD. Firms are expected to provide their IPs with adequate support and training to ensure best practice in the administration of PTDs and should seek to ensure that their systems adequately support this process.

2.6 One of the aims of the Guidance is to improve efficiency in the PTD process and to this extent creditors and trustees will avoid the need for the terms of the trust deed protection request to be amended wherever possible. This does not affect the right of creditors to vote for or against the protection request but they are expected to supply reasons supporting their rejection decision.