In May 2015 the Cypriot government completed a major overhaul of the country’s corporate and personal insolvency law framework and regulation of insolvency practitioners as part of a memorandum of understanding entered into by Cyprus with the International Monetary Fund (the “IMF”), the European Commission and the European Central Bank.
The Ministry of Energy, Commerce and Industry (the “Ministry”) and the Insolvency Service (the “Insolvency Service”), consider that further strengthening of the regulatory framework for insolvency practitioners was necessary in the areas of training, supervision and discipline to achieve a common standard of regulation and coordination between the different licensing bodies i.e. the Insolvency Service, the Bar Association and the Association of Chartered Accountants.
To this end, in April 2017, the Ministry with the support of European Bank for Reconstruction and Development (EBRD) submitted a request for technical assistance from the Structural Reform Support Services (SRSS) in order to strengthen the regulatory framework for the Insolvency Practitioners. The request was approved and EBRD initiated the call for implementation of the project. The Project was initiated in December 2017 and it will be completed within 18 months.
The overarching objective of this Project is the strengthening of the framework and providing training for Insolvency Practitioners (“IPs”) in Cyprus. The proposed activities have been organised into two phases, set out below:
1. Phase 1 - Analysing the existing regulatory framework for IRPs
2. Phase 2 – Capacity Building for the Insolvency Practitioners
Phase 1 - Analysing the existing regulatory framework for IRPs
Phase 1 incorporates the analysis and assessment of the existing regulatory framework for IPs in Cyprus aiming to:
(i) the identification of the main shortcomings in the current appointment system of IPs;
(ii)the assessment of the competences and responsibilities of the examination, licensing and supervisory bodies of IPs; and
(iii) the areas related to the IP profession that need to be standardised, coordinated and/or strengthened.
Concrete and specific measures will be provided with respect to:
(a) the harmonisation of the regulatory and cooperation framework between the licensing and supervisory bodies;
(b) raising the current standards within the IP profession through guidelines or codes of best practices; and
(c) ensuring a consistent implementation and/or improvement of the code of conduct in supervisory and disciplinary matters.
The Report will provide recommendations to achieve a successful and effective implementation of the measures and actions proposed to strengthen the current regulatory framework for the profession of IRPs.
Phase 2 – Capacity Building
The Learning needs have been assessed and at this stage the Learning Interventions and the Training Materials are being prepared for the Insolvency Practitioners, and other stakeholders such as the future Trainers of the Insolvency Practitioners and the Members of the potential Insolvency Practitioners’ Learning &Develop Committee.
|Award category:||new solutions to complex challenges - a public sector citizen-centric, sustainable and fit for the future - european or national level|
|Sector:||Public administration, modernisation, institutional affairs, reform|
|Type of activity:|
|Keywords:||Insolvency Practitioners, Harmonization of Procedures, Learning and Development|
|Short English description:||In May 2015 the Cypriot government completed a major overhaul of the country’s corporate and personal insolvency law framework and regulation of insolvency practitioners as part of a memorandum of understanding entered into by Cyprus with the International Monetary Fund (the “IMF”), the European Commission and the European Central Bank.|
|Organisation:||Ministry of Energy, Commerce and Industry|
|Level of government:||national level|
|Size of organisation:||>100|
|Number of people involved:||6-10|
|EU membership:||EU member|