Newer version available

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Debt Advice Handbook Scotland 1st ed - with new material

Trust deed protocol

A ‘trust deed protocol’ has been developed by the AiB and other industry bodies. It sets out operational process changes introduced to promote good practice, improve transparency in the PTD administration process and provide greater clarity on the AiB’s PTD supervision roles and responsibilities.

The protocol complements the AiB’s PTD Notes for Guidance for clients, creditors and trustees about PTD administration.

As it is a voluntary code of conduct, there is currently no legal requirement for PTD trustees to consent to and comply with the protocol. In the future, it could be incorporated into legislation.1PTD protocol at aib.gov.uk/debt-solutions/protected-trust-deeds/ptd-protocol#:~:text=The%20intention%20of%20the%20PTD,creditor%20expectations%20in%20a%20PTD In the meantime, Scottish Ministers and the AiB would like PTD trustees to consent to the terms of the protocol so there is consistency in the administration of all PTDs.

The insolvency practitioners agreeing to abide by the protocol have agreed to only accept referrals for trust deeds from Finacial Conduct Authority (FCA) authorised firms. So, if bad advice is given, the client should have some redress to the FCA on the behaviour of the firm. This could be appropriate where the client’s situation has not been properly assessed by the CFT and/or no advice letter has been given out. See here for information about complaints.

The FCA is currently developing proposals that would ban the payment of fees to debt packagers.

 

1     PTD protocol at aib.gov.uk/debt-solutions/protected-trust-deeds/ptd-protocol#:~:text=The%20intention%20of%20the%20PTD,creditor%20expectations%20in%20a%20PTD »