Last Updated on Thursday, 4 May, 2023 at 3:26 pm by Andre Camilleri
The Insolvency and Receivership Service within the Malta Business Registry is issuing a call for applications for provisional authorisation to act in the field of dissolution and insolvency in terms of the Insolvency Practitioners Act (the “Act”). This is an important step to establish and populate the Register of Insolvency Practitioners pursuant to the Act, which is aimed at regulating the activities of insolvency practitioners and partially transposing the European Directive 2019/1023.
This new framework is a move towards more transparency, aimed at providing businesses with all the necessary tools and assistance when facing hurdles, whilst ensuring that insolvency practitioners guiding businesses through difficult times are duly licensed by the competent authority.
The Register of Insolvency Practitioners shall include:-
- the insolvency practitioners;
- the registered firms;
- any categorization of the functions of each insolvency practitioner and the extent of the authorization of each insolvency practitioner and registered firm;
- the insolvency practitioners whose authorization has been suspended, revoked or withdrawn in full or in part by reference to any category of authorization;
- the registered firms whose registration has been suspended, revoked, or withdrawn in full or in part by reference to any category of authorization; and
- the insolvency practitioners or registered firms who are deemed by the Insolvency and Receivership Service to be in default of their obligations in terms of this Act or of any regulations or directives made under it.
Additionally, the Act includes a transitory provision which introduces an interim measure for the provisional authorisation of insolvency practitioners. In view of this, the Insolvency and Receivership Service within the MBR will be receiving applications from any person eligible to apply in terms of Article 29 of the Act.
Practitioners who currently exercise functions listed in the Act are invited to file an application with the MBR or to apply through email at firstname.lastname@example.org by downloading this form. These provisional authorisations shall expire on 23rd December, 2024, irrespective of the date of issuance thereof.
The Chief Executive Officer and Registrar of the Malta Business Registry Dr Geraldine Spiteri Lucas stated that this stance paves the way to regulate the conduct of insolvency practitioners. ‘At the same time, the Act opens the door for practitioners to specialize in this sector. Most importantly, we are ensuring that there is a transparent process regarding the appointment, removal, and resignation of practitioners in the field of insolvency, that the information is public, that there is a public register, and that authorities are informed and updated. In this way, we will have our hands on the pulse of the progress of businesses in our country’ explained Dr Spiteri Lucas.
The Official Receiver and Head of the Insolvency and Receivership Service, Dr Ingrid Fenech, said that these legislative amendments will provide an indispensible new tool to businesses facing hard times, by putting in place a framework intended to provide regulated guidance, tailored for the specific needs of each business. Dr Fenech said that, specifically, there will be a harmonised approach when
dealing with struggling enterprises, which will ensure that all businesses have access to the necessary assistance.