SIP 1 is an introduction to the SIPs and sets out the purpose and principles of them. It reminds you that they should be read in conjunction with the fundamental principles as set out in the Insolvency Code of Ethics and be applied in accordance with the spirit of that Code. Taking a strict and literal interpretation of the SIPs may not be appropriate where doing so would be contrary to the fundamental principles.
It also reminds you that not only must you comply with the SIPs, but you must evidence your compliance with them. Make sure that you document your strategies and decision making processes as part of that evidence. Prepare appropriate file notes and ideally also prepare a case strategy note either prior to, or immediately after, appointment to identify the assets and how you intend to deal with them, and to set out any case specific issues or concerns and how you will deal with those.
Such evidence also helps protect you should you end up being challenged in Court, or if a complaint is made against you. For example, in IVAs record why you are using the particular entry route, interim order or non-interim order, in order to evidence compliance with SIP 3; and in CVLs record why you are selling the assets to a connected party in order to evidence compliance with SIP 13.
