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CS Professional · Insolvency and Bankruptcy - Law and Practice · Introduction to Insolvency and Bankruptcy Code

The Board is deciding whether to register Prime Insolvency Forum as an insolvency professional agency. Which consideration is among the principles the Board must have regard to under the Code?

The Board must have regard to promoting good professional and ethical conduct amongst insolvency professionals. Section 200 sets out this principle with others such as protecting debtors and creditors and promoting growth of agencies. Fee maximisation, a single agency or a single-profession limit is not a listed principle.

  1. AMaximising the fee income of the Board from agencies
  2. BLimiting the number of agencies to one in order to avoid competition
  3. CPromoting good professional and ethical conduct amongst insolvency professionalsCorrect
  4. DEnsuring that only chartered accountants are enrolled as members

Explanation

Section 200 lists principles including promoting professional development and regulation, competent services, good professional and ethical conduct, protecting interests of debtors and creditors, and promoting the growth of agencies. Limiting agencies to one contradicts the growth principle. Fee maximising and a single-profession restriction are not listed.

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