Insolvency Professional Agencies

A chartered accountant answers to the Institute of Chartered Accountants; an advocate answers to the Bar Council. If either cheats a client, there is a professional body that can suspend or strike them off. The person who runs a bankrupt company is also a professional, and the Insolvency and Bankruptcy Code does not leave him to the regulator alone. Between the individual and the Board it places a middle layer, the insolvency professional agency. What does that layer do, and why is it there?

In two minutes

An insolvency professional agency (IPA) is a body registered with the IBBI that enrols insolvency professionals as members, sets their conduct standards under model bye-laws approved by the Board, monitors them, and disciplines them, so that the Board regulates the agencies and the agencies regulate the individuals.

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