ISLAMABAD, Oct 2 (IN): The Securities and Exchange Commission of Pakistan (SECP) has invited public comments on a proposed accreditation framework for official liquidators, provisional managers and insolvency experts.The proposed framework aims to strengthen the management of corporate liquidation, rehabilitation and insolvency proceedings under the Companies Act, 2017 and the Corporate Rehabilitation Act, 2018.According to a press release issued by the SECP, the initiative seeks to develop a pool of qualified professionals capable of handling company winding-up proceedings and supporting the rehabilitation of financially distressed businesses.
The proposed measures are intended to improve the efficiency and transparency of such proceedings, safeguard creditors’ interests and facilitate the recovery of viable companies.Under the framework, professionals seeking empanelment as official liquidators and insolvency experts, as well as those already empaneled by the Commission, would be required to obtain professional certification in insolvency practice from the Institute of Financial Markets of Pakistan (IFMP).The proposed three-stage certification programme would include written and oral examinations, along with annual continuing professional development requirements.
The framework also proposes a code of conduct for official liquidators and provisional managers, who perform interim roles during insolvency proceedings.The SECP said the proposed measures address capacity gaps identified in the World Bank’s 2022 Report on the Observance of Standards and Codes and draw on international practices followed in the United Kingdom, Singapore, Malaysia and India.
