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Purpose

The Protected Trust Deed Working Group (PTDWG) will review the current Protected Trust Deed arrangements and will examine evidence collected from the AiB review of PTDs and other relevant analysis undertaken in Scotland.

Based on this review the PTDWG will make recommendations for a coherent approach, including if appropriate legislative and non-legislative measures, to ensure the Protected Trust Deed process in Scotland is fit for purpose and that it strikes the best possible balance between the needs of debtors and the rights of creditors.

Background

Part 1 of the Bankruptcy & Diligence etc. (Scotland) Act 2007 came into force on 1 April 2008. A key element of was to improve the transparency of the Protected Trust Deed process. This led to the AiB being granted a supervisory role over the administration of Protected Trust Deeds and the introduction of an AiB annual review procedure for all Protected Trust Deeds.

Since its introduction we have experienced the deepest recession in living memory. In response the Scottish Government announced an Economic Recovery Plan in autumn 2008. The plan emphasised the importance of aligning Scottish Government activity to best position Scotland for recovery.

Scope

The scope of the PTDWG is limited to the Protected Trust Deed process and will not consider the wider bankruptcy or Debt Arrangement Scheme processes.

The specific issues that will be covered will include:

• The Protected Trust Deed process - is it effective and can it be improved?
• How best to address the creditors interest - in terms of the return/dividend;
• How best to address the debtors interest - in terms of the cost, the process, the upshot;
• The fees - existing evidence, stakeholder concerns and alternative options;
• Existing regulation and the supervisory role;
• The need for change and any options for change.