The Registration Authority of Abu Dhabi’s Global Market has approved amendments to its insolvency practitioner framework.
The amendments will allow more insolvency practitioners to be active within the IFC. They will also improve the role of the Registration Authority in monitoring and regulating these practitioners and provide more protection for insolvent parties and creditors.
The amendments have been approved to reinforce the Global Market’s alignment with international best practices.
Previously practitioners had to obtain a licence and have a registered office address in the Global Market.
The new rules replace this requirement and allow eligible individuals to follow a straightforward registration mandate in the insolvency practitioners’ Register maintained by the Registrar. In addition, there is no annual renewal requirement. However, a registered insolvency practitioner must provide the Registrar with a yearly confirmation statement, confirming details of any appointments under the Insolvency Regulations 2022 and compliance with the Insolvency Practitioner Rules.
The amendments will significantly reduce the administrative burden on insolvency practitioners who want to be registered in the Global Market and encourage an increase in the number of registered practitioners.
The new Insolvency Practitioner Rules contain several registration requirements. These include being in continued employment with, or a member, director, or partner of a firm or corporate registered in or outside the Global Market, holding a membership with a recognised professional body, or satisfying specific ‘fit and proper’ criteria.
They must also provide evidence of insolvency experience.
Registered insolvency practitioners must obtain a security bond before any appointment under the IFC’s Insolvency Regulations.
Practitioners appointed as a liquidator are exempted from this requirement under Section 178 of the Insolvency Regulations.
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