1. Protected Trust Deed (PTD) Workshop AiB Stakeholder Events 2016

2. Introduction PTDs registered – quarterly comparison PTDs RegisteredQ1Q2Q3Q4 2013-20142038169716741272 2014-2015121213371054834 2015-201684912651356

3. Changes to the PTD Regulations The Protected Trust Deeds (Scotland) Regulations 2013 introduced a number of key provisions, which include: Minimum debt level of £5,000. Increase of the standard repayment period from 36 to 48 months. Acquirenda vests in the trustee for 4 years. A formal process for deductions from earnings where contractual obligations are not met.

4. Changes to the Regulations Use of the Money Advice Trust Common Financial Tool to calculate expenditure. A requirement for the trustee to demonstrate that a trust deed is an appropriate solution. If AiB is not satisfied with the case presented, there is a new power to prevent the granting of ‘protected’ status. Trust Deed advertisements now appear on the Register of Insolvencies.

5. Changes to the Regulations Pre-trust deed fees and outlays will be excluded. Any such fees and outlays will rank with other debts. Trustees are required to charge a single, fixed, upfront fee augmented by further remuneration based on a percentage of funds ingathered through the administration of the case. Fee proposals must be notified to creditors on Form 3 at the outset of the trust deed.

6. Changes to the Regulations Should exceptional circumstances arise that require further expenditure in the case, there is a process for seeking approval from creditors. Where creditors do not engage, trustees may apply to AiB to decide on whether the increased fee is appropriate. No contributions can be paid from a debtor’s social security benefits. Equity will be frozen in a dwelling-house at the date the trust deed is granted.

7. Changes to the Regulations The annual Form 4 must be issued to the debtor, creditors and AiB. Trustees will be required to provide information to creditors if the expected dividend has reduced by 20 per cent or more, provide details of the options available and to make a recommendation on the way forward. Interim dividends should be paid to creditors, where sufficient funds are available, after 24 months and then 6 monthly thereafter.

8. Subsequent Legislative Changes The use of a single common financial tool (CFT) to assess household income and expenditure was introduced across all statutory debt solutions in Scotland on 1 April 2015. The Common Financial Tool etc. (Scotland) Regulations 2014 The Common Financial Tool etc. (Scotland) Amendment Regulations 2015

9. Subsequent Legislative Changes These regulations introduced some changes for trust deeds signed on or after 1 April 2015. Amendments to the statutory Forms 3, 4, 6 and 7 to include rows for debts and dividends due to preferred and postponed creditors. Introduction of Form 2A, a statutory form which records the income and expenditure for the debtor.

10. Subsequent Legislative Changes Amendment to regulation 23(1)(c) to state that trustees will be entitled to claim remuneration for a single valuation of a specified heritable property. Debtor may retain 10% of the weekly, fortnightly or monthly contribution up to a maximum of £20 per month as a contingency allowance.

11. PTD Review and Consultation AiB are undertaking a review of protected trust deeds. The review will measure, where possible, the effectiveness of the changes to the PTD regulations. The review will consider: Information gathered through consultation with external stakeholders; Feedback from trustees; and Key statistical information.

12. PTD Review and Consultation The consultation document will be published shortly and stakeholders will be notified prior to publication. The findings are expected to be published on the AiB website by mid-2016.

13. ASTRA Development ASTRA AiB Supervision of Trust Deeds, Registration & Advertising System ASTRA is a web-based hub developed to support the administration of the PTD process and facilitate the electronic submission of trust deed advertisements and statutory forms. ASTRA was introduced on 28 November 2013. AiB are continuing to develop ASTRA and extend the functionality, which will include:

14. ASTRA Development Insolvency Practitioner (IP) Interface ASTRA System Developers are continuing to work with IP System Providers to implement the IP Interface. If you are interested in using the IP interface, we suggest that you discuss this with your IP system provider. Creditor Interface Allow the system to be used by creditors and their representatives in order that the entire PTD process may be conducted electronically through ASTRA.

15. ASTRA Development Migrate all PTD cases to ASTRA system Migrate PTDs, granted prior to 1 April 2008, to allow these cases to be administered on ASTRA. Moving forward, system updates should be released more frequently. If you have any suggestions for improvements, please raise them with the Trust Deeds team (Lisa Ledingham-Park or Michelle Murdoch), who can discuss the suggestions with the AiB Efficiencies and Technology team.Lisa Ledingham-ParkMichelle Murdoch

16. PTD Standing Committee The PTD Standing Committee is chaired by AiB and comprises of members from the Creditor, Insolvency Practitioner and Debt Advice sectors, as well as Recognised Professional Bodies. The purpose of the PTD Standing Committee is to: Provide information and guidance to the AiB on the administration of PTDs; Help identify issues or general areas of concern arising from the administration of PTDs at an early stage; and

17. PTD Standing Committee Act as a discussion forum for stakeholders, to ensure that there is an effective conduit for the receipt and dissemination of information concerning PTDs across stakeholder groups and interested parties. The matters discussed by the committee at this latest meeting include how equity is dealt with in protected trust deeds, the upcoming PTD review and an update on the continuing development of the ASTRA system. PTD Standing Committee minutes are published on the AiB website.

18. PTD Bulletin The Trust Deeds team periodically produce a PTD Bulletin, which is published on the AiB website. This bulletin contains ASTRA development updates, information about PTD processes, guidance and helpful hints as well as a frequently asked question (FAQ) section.

19. PTD Bulletin If you are interested in receiving notification of when the PTD Bulletins are published, you can register to receive updates on the AiB website We are grateful for any feedback received, regarding the PTD Bulletin, so that we may gauge the effectiveness and incorporate improvements for future editions.

20. Questions What are your views on the changes to the PTD regulations? What are your views on the ASTRA system? What can we do to encourage the use of ASTRA? Do you find the information contained within the PTD Bulletin useful? Overall, have the changes been positive?

21. Lisa Ledingham-Park, Trust Deeds Team Leader 0300 200 2794, lisa.ledinghampark @aib.gsi.gov.uk 1 Pennyburn Road, Kilwinning, Ayrshire, KA13 6SA T 0300 200 2600 F 0300 200 2601 W www.aib.gov.uk THANK YOU