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CS Professional · Insolvency and Bankruptcy - Law and Practice · Professional and Ethical Practices for Insolvency Practitioners

An insolvency professional agency's registration is under review. A member argues the Board may consider only the agency's growth. Which statement correctly reflects the principles the Board must have regard to when registering insolvency professional agencies?

The Board must weigh all the listed principles, including promoting professional development, competent services, good professional and ethical conduct, protecting interests of debtors, creditors and other specified persons, and agency growth. Considering only growth, or only creditors, misstates the principles.

  1. AOnly promotion of the growth of agencies matters
  2. BThe Board must also promote good professional and ethical conduct among insolvency professionals and protect the interests of debtors, creditors and other specified personsCorrect
  3. CThe Board must consider only the protection of creditors
  4. DThe Board must consider only the professional development of insolvency professionals

Explanation

Section 200 lists five principles: professional development and regulation, services of competent professionals, good professional and ethical conduct, protection of interests of debtors, creditors and others, and growth of agencies. Growth is only one of them, so the member's view is wrong.

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