1. The Accountant in Bankruptcy AiB Stakeholder Events 2012

2. Stakeholder Events | Rosemary Winter-Scott | Dec 2012 Content 1.AiB Mission and Functions 2.Volumes of Activity & Trends 3.Updates 4.Workshop Topics 5.Engaging with AiB

3. Stakeholder Events | Rosemary Winter-Scott | Dec 2012 1. The Accountant in Bankruptcy (AiB) Mission: To ensure access to fair and just processes of debt relief and debt management for the people of Scotland, which takes account of the rights and interests of those involved

4. Stakeholder Events | Rosemary Winter-Scott | Dec 2012 AiB Functions Recognising our unique role - we achieve this through the following functions: Supporting Ministers to develop & refine policy Supervising the insolvency process Delivering, with stakeholders, a range of options for individuals seeking debt relief and debt management Delivering best value public services By doing so, we will support the Scottish Government’s purpose – “to create a more successful country, with opportunities for all of Scotland to flourish, through increasing sustainable economic growth”

5. Stakeholder Events | Rosemary Winter-Scott | Dec 2012 2. Trends in Activity Based on current levels of activity (9 months to end Dec) Predicting in 2012/13 cf 2011/12 -16% (decrease) in Bankruptcies -5% (decrease) in PTDs Net 14% decrease in insolvencies + 46% (increase) in DAS Continued reduction in number of creditor petitions between -12% and -18% predicted Rise in marketing from debt management companies leading a take-up of targeted debt solutions rather than advice and a holistic approach Ministers increasing concerns about: –Debt management firms –Pay day loans –Day/fee rates of IPs not being proportionate to the circumstances of the case

6. Stakeholder Events | Rosemary Winter-Scott | Dec 2012 Debt Arrangement Scheme (DAS) Debt Arrangement Scheme Review 2012 Review Period - 1 July 2011 to 30 June 2012. http://www.aib.gov.uk/news/releases/2012/11/debt-arrangement-scheme- review-2012

7. Stakeholder Events | Rosemary Winter-Scott | Dec 2012 DAS – Activity Levels Number of DAS DPPs increasing 2009/10 - 1,417 2010/11 - 1,910, 2011/12 – 3,319 (73.7% increase)

8. Stakeholder Events | Rosemary Winter-Scott | Dec 2012 DAS – Activity Levels W ithin that increase there are quarterly fluctuations DAS Marketing

9. Stakeholder Events | Rosemary Winter-Scott | Dec 2012 DAS – Rate of Uptake Per 10,000 working age people Significant variation at Local Authority level The rate in Inverclyde and West Dumbartonshire is almost 6 times that of the Orkney Islands

10. Stakeholder Events | Rosemary Winter-Scott | Dec 2012 DAS – Duration of Plans Previously on average DPPs ran for 8 yrs 5mths The average length of all DPPs since the Scheme started is 7 years 2 months, to the nearest month. The average length of DPPs approved in this review period is 6 years 8 months

11. Stakeholder Events | Rosemary Winter-Scott | Dec 2012 DAS – Level of Debt Previously on average, debtors owed £24,194 But now the majority of DPPs include debts of less than £25,000 The average debt is now is £18,903 (and median is £12,913)

12. Stakeholder Events | Rosemary Winter-Scott | Dec 2012 DAS – Age of Debtor The proportion of younger debtors has increased The average age of a DPP debtor is now 44 years, 11 months

13. Stakeholder Events | Rosemary Winter-Scott | Dec 2012 DAS – Profile of Payments The average monthly payment in a DPP is £238 (slight decrease from previous years) 36.4%, pay between £101 and £200 per month in their DPP 77.4% of debtors make payments of less than £300 per month

14. Stakeholder Events | Rosemary Winter-Scott | Dec 2012 DAS – Joint DPPs 18% joint DPPs 80% Joint applications have debtors with aged 30-59 yrs Where as younger applicants tend to be for single DPPs

15. Stakeholder Events | Rosemary Winter-Scott | Dec 2012 DAS – Average total debt by entry age Lower levels of debt for younger participants

16. Stakeholder Events | Rosemary Winter-Scott | Dec 2012 DAS – Average payments by entry age Debtors over the age of 65 paid the highest average monthly payment (£305) towards their DPP. This is £58 more than a debtor aged between 45-54 years of age and £178 more than a debtor under the age of 25

17. Stakeholder Events | Rosemary Winter-Scott | Dec 2012 DAS – Overall Summary DAS is increasingly being used; –By younger people –For those with smaller debts –For those with joint debts (18%) and those with a single debt 3.4% –As an early intervention – to prevent insolvency It is attracting increased interest from other countries –As an effective debt management option – rather than debt relief

18. Stakeholder Events | Rosemary Winter-Scott | Dec 2012 Insolvencies - Activity Levels

19. Stakeholder Events | Rosemary Winter-Scott | Dec 2012 Insolvencies

20. Stakeholder Events | Rosemary Winter-Scott | Dec 2012 Bankruptcy (Sequestration) Three routes –LILA – Low Income Low Asset –Apparent Insolvency –Certificate for Sequestration (c ame into force on 15 November 2010 ) At the end of Q1 this year 2,916 bankruptcy awards had been made using the Certificate for Sequestration Of which - trustee breakdown is AiB 39% Private trustee 61%

21. Stakeholder Events | Rosemary Winter-Scott | Dec 2012 Developing a Vision for the 21 st Century A “Financial Health Service” for debt advice, debt management and debt relief which: Ensures access to fair and just processes of debt relief and debt management Supports the principle that those debtors who can pay should pay their debts Acknowledges the wide range of circumstances and events that contribute towards bankruptcy for individuals and businesses Secures the best return for creditors – ensuring that the rights and needs of those in debt are balanced with the needs of creditors and businesses

22. Stakeholder Events | Rosemary Winter-Scott | Dec 2012 Bankruptcy Law Reform Consultation Initial Consultation: http://www.scotland.gov.uk/Publications/2012/02/628 –Closed on 18 th May 2012 –129 responses including 89 organisations Summary of responses published http://www.aib.gov.uk/news/releases/2012/08/bankruptcy-law- reform-consultation-summary-responses Government response published 1 Nov 2012: http://www.aib.gov.uk/news/releases/2012/11/scottish- government’s-response-consultation-bankruptcy-law-reform Current work –Ongoing stakeholder discussion & specific engagement with creditors –Drafting of legislation and Regulations Bill introduced to Parliament prior to summer 2013

23. Stakeholder Events | Rosemary Winter-Scott | Dec 2012 3. AiB Updates AiB Senior Management Team IIP Gold NACAB Adviser IAIR

24. Stakeholder Events | Rosemary Winter-Scott | Dec 2012 AIB Senior Management Team The Accountant in Bankruptcy & Agency Chief Executive – Rosemary Winter-Scott Executive Director Corporate Services & Assistant Chief Executive – Charles Keegan Executive Director Policy and Compliance & Assistant Chief Executive – Claire Orr Executive Director Case Operations & Deputy Accountant – John Cook

25. Stakeholder Events | Rosemary Winter-Scott | Dec 2012 Investors in People Gold

26. Stakeholder Events | Rosemary Winter-Scott | Dec 2012 CAB adviser located in AiB Ian Brough Independent CAB Adviser Located in AiB, 1 Pennyburn Road, Kilwinning Contact number: 0300 200 2922 e-mail: ian.brough@nacasadvice.org.uk

27. Stakeholder Events | Rosemary Winter-Scott | Dec 2012 Members of the IAIR are: – Government Departments/Ministries – Agencies and Public Authorities Which have responsibility in their country for one or more of: – Insolvency Policy & Legislation – Insolvency Practice & Administration – Insolvency Regulation Rosemary Winter-Scott elected Chair of IAIR 2012-2013 Scotland to host its Annual International Conference and AGM in Edinburgh 23-26 th September 2013

28. Stakeholder Events | Rosemary Winter-Scott | Dec 2012 “5 Nations” Regional group of IAIR: – UK Insolvency Service (England & Wales) – AiB (Scotland) – Northern Ireland – Ireland – Jersey Regular meetings to share: – learning from the IAIR conference & any study visits – experiences & development Last meeting in Nov 2012 - Scotland Irish Bankruptcy Reform Scottish – DAS, contracting, Bankruptcy Reform Bill

29. Stakeholder Events | Rosemary Winter-Scott | Dec 2012 5. Workshop Topics Bankruptcy Law Reform Bill – what will be included in the Bill and what are the implications? Maximising Efficiency - how can new technology improve the way we work together? Operational Update - your opportunity to learn about AiB's processes and ask us questions

30. Stakeholder Events | Rosemary Winter-Scott | Dec 2012 6. Engaging with AiB Work with us to develop more effective policies for Scotland –A Vision for the service fit for the 21 st Century –Which take account of the rights and interests of all involved –Importance of ongoing constructive engagement with stakeholders Participate with us: –Attend the annual Stakeholder events hosted around Scotland –Call and engage with my staff about any areas of interest –Invite me/my staff to come out and speak at your events –Visit our Website – an increasing source of publications & information –Visit AiB or shadow a member of AiB staff –Follow us on Twitter @AiB_updatesAiB_updates

31. Rosemary Winter-Scott The Accountant in Bankruptcy & Agency Chief Executive T: 0300 200 2901 E: ce@aib.gsi.gov.ukce@aib.gsi.gov.uk