The Insolvency Ordinance and its subsidiary legislation establish mechanisms for dealing with the liquidation and bankruptcy of companies and individuals. The legislation governs the treatment of companies and individuals who may become insolvent, and includes, among other things, licensing and supervision of Insolvency Practitioners, company arrangements, receivership, liquidation of companies, personal insolvency and bankruptcy of individuals.
The Commission, in addition to its obligation to licence and supervise Insolvency Practitioners, has various responsibilities under the Ordinance and is the Official Assignee.
The Commission is responsible for the licensing and supervision of Insolvency Practitioners.
It is an offence for any person to act as an Insolvency Practitioner in the Islands without a licence issued by the Commission pursuant to the Insolvency Ordinance. Any person acting as an Insolvency Practitioner without a licence commits an offence and is liable to up to five years imprisonment or to a fine of up to $100,00.00 or to both the fine and imprisonment.
There are limited circumstances in which the Ordinance may allow a non-licenced practitioner to operate in the Islands; however, you are advised to seek independent legal counsel on such situations.
The basic requirements for an Insolvency Practitioners licence are established in the legislation.
The person shall
- not be a bankrupt or otherwise disqualified
- be resident in the Islands
- be fit and proper to act as an insolvency Practitioner (the following will be assessed)
- financial soundness
- competence and capability
- honesty and integrity
- be qualified to act as an Insolvency Practitioner (the following will be assessed)
- Academic qualifications
- Insolvency experience
Other considerations for licence or the renewal of a licence include
- Adequate professional indemnity coverage
- Adequate procedures, systems and controls
- Ability to adequately maintain of records
- Filing of Annual Returns
- Payment of licence fees