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

Vikram Joshi, an insolvency professional, is registered with an insolvency professional agency. A colleague claims that the Board, when registering such agencies, looks only at their growth and revenue. Which of the following is among the principles the Board must have regard to under section 200?

The Board must have regard to promoting good professional and ethical conduct amongst insolvency professionals. Section 200 lists this alongside professional development, competent services, protecting the interests of debtors, creditors and others, and the growth of agencies, so the colleague's claim is wrong.

  1. AMaximising fees earned by insolvency professionals
  2. BPromoting good professional and ethical conduct amongst insolvency professionalsCorrect
  3. CRestricting the number of insolvency professionals to protect incumbents
  4. DGiving priority to the interests of creditors alone over debtors

Explanation

Section 200 lists principles including professional development and regulation, services of competent professionals, good professional and ethical conduct, protecting interests of debtors, creditors and others specified, and growth of agencies. Ethical conduct is expressly listed. Creditors alone are not favoured, since debtors are also protected, and maximising fees or restricting numbers is not a principle.

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