The Securities and Exchange Commission of Pakistan (SECP) has requested public comments regarding a proposed accreditation framework for official liquidators, provisional managers, and insolvency experts. This framework intends to introduce measures designed to enhance corporate liquidation and rehabilitation proceedings, specifically under the Companies Act, 2017, and the Corporate Rehabilitation Act, 2018.
The core objective involves building a pool of qualified professionals capable of managing company wind-ups and supporting the rehabilitation of businesses facing financial difficulties. To gain empanelment as official liquidators and insolvency experts, or for those already listed, practitioners must secure professional certification in insolvency practice from the Institute of Financial Markets of Pakistan (IFMP).
This certification requires participation in a three-stage programme, which encompasses both written and oral examinations, alongside mandatory annual continuing professional development. Furthermore, the proposal includes establishing a code of conduct that will govern the actions of official liquidators and provisional managers.
These proposed adjustments seek to remedy capacity gaps that were identified in the World Bank’s 2022 Report on the Observance of Standards and Codes.
