Protected trust deeds: consultation on proposals for legislation changes

Introduction

1. The Scottish Government recognises the responsibility it has to take action where it can to help the people of Scotland, particularly in this time of economic uncertainty, by ensuring that its debt management and debt relief solutions are fit for purpose, support the people of Scotland and help to strengthen Scotland's economy.

2. During 2016, we began a series of legislative reviews to determine if changes introduced to the Debt Arrangement Scheme (DAS) and protected trust deeds (PTDs) in recent years have met their intended outcomes. As part of these reviews, we carried out two DAS and a PTD consultation. A summary of the responses to each of the consultations can be found on the Accountant in Bankruptcy's (AiB) website. The first stage of the DAS review is now complete and a number of legislative changes identified during this part of the process came into force on 29 October 2018. The final part of the review is currently underway with the publication of the DAS Consultation 2018 – Building a Better Debt Arrangement Scheme. That consultation focusses on further proposals to make DAS more attractive for money advisers to encourage them to deliver the product.

3. Following the PTD consultation and building on the responses received, alongside detailed analysis of statistical data, we have continued to discuss and seek views on possible changes to the control framework for PTDs. As a direct result of feedback from stakeholders, via the consultation and further events, we have now identified a legislative approach that aims to address the concerns raised and enhance the effectiveness of PTDs through greater transparency and fairness. This document sets out our proposed way forward and, as some of the proposals have been developed through feedback received following the previous consultation, we now ask for your feedback on these specific proposals by providing your response to the key questions contained in Annex B.