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Notes for Guidance - Protected Trust Deeds - Bankruptcy (Scotland) Act 2016

This guidance describes the general functions of Accountant in Bankruptcy and trustees in relation to their responsibilities regarding protected trust deeds (PTDs) which were granted on or after 30 November 2016

7.2 Audit and determination of fixed fee

The Accountant will not expect a request for an audit of the trustee’s fixed fee, if the fee taken is in accordance with the information declared and approved by creditors.

The Accountant may determine a fixed fee at an alternative amount if the trustee has requested a proportion of the fixed fee for any work that has either not been completed or where the trustee should have known the work would not be completed during the administration of the PTD. In reaching a determination on the appropriate fixed fee, the Accountant will have regard to whether the fees are appropriate, reasonable and commensurate with regard to the work undertaken.

If AiB believe they have grounds to reduce a trustee’s fee, the trustee will be advised of this and given the opportunity to provide any additional information or documents to support the fee/outlay claimed.

AiB may reduce a fee claimed by the trustee in respect of the assets and contributions that have been in-gathered during the administration of the estate, if AiB can demonstrate that a percentage rate applied by the trustee to determine this fee, was greater than the rate declared at the outset to creditors on Form 3, or if the incorrect asset/contributions value has been used.

Where a trustee’s fee has been determined the trustee will be notified through AiB’s audit observation process.

In the event that a requested fee is reduced, the trustee will be notified of the determination and reason for the reduction.

The trustee, debtor or a creditor may appeal the Accountant’s determination. Section 188(1)(d) of the Act refers.

The debtor or creditor must be able to satisfy a sheriff that s/he, has, or is likely to have, a pecuniary interest in the outcome of the appeal.

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