News overview

IOH update 4: Principles and Best Practices for Insolvency Office Holders

The IOH project aims to develop a well-founded framework of Principles and Best Practices for Insolvency Office Holders (IOHs) all over Europe. These non-binding rules introduce, assess or strengthen existing rules for IOHs on licensing and registration, on professional and ethical standards, on roles and responsibilities in insolvency proceedings, and finally on insolvency governance. They should serve as a sound benchmark for individual IOHs, professional insolvency practitioners’ associations, judges and other public authorities.

Report I, submitted to the INSOL Executive in September 2013, contains a framework and a model, which are subsequently applied on the analysis of regionally and globally established rules for IOHs.  Report II, presently at the Review and Advisory Group, contains a model-based analysis of the rules for IOHs in France, Germany, Italy, Latvia, Lithuania, the Netherlands, Poland, Romania, Serbia, Spain and the UK. This comparative analysis shows the differences in approach and solution on the various sets of rules. On their turn, those differences indicate the room for Principles and Best Practices.

As the table shows, on the four main areas of IOH related issues, we detected room for 7 Principles and over 20 Best Practices. Whether we will indeed propose all of these rules will be discussed with the Academic Advisory Committee,  the Review and Advisory Group and INSOL members over the coming months.

Categories Principles Best Practices
IOH Selection & Appointment 1 5
Professional Standards 2 4
Roles & Responsibilities 3 8
Insolvency Governance 1 4

Table 1: summary findings on room for Principles and Best Practices

Report III, in final version forthcoming in November 2014, will contain the Principles and Best Practices. Before then, Leiden Law School will present the findings in conferences in Leiden, Barcelona and Istanbul and have conference calls, send out questionnaires and apply other means to invite IOHs and other people  involved in insolvency proceedings to comment and thereby improve the forthcoming set of rules.

For further information: Dr. Bernard Santen (ioh@law.leidenuniv.nl).

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