Insolvency Practitioners

General

To ensure the efficient implementation of legislations concerning insolvency proceedings, the introduction, institutionalisation and regulation of the profession of insolvency practitioners were considered necessary. The Insolvency Department, the Cyprus Bar Association and the Institute of Certified Public Accountants of Cyprus have been appointed by Ministerial Decree as competent authorities for the licensing, regulation and the supervision of the profession of insolvency practitioners.

Arrangements relating to the training and licensing of insolvency practitioners, their supervision and disciplinary control, as well as the procedure of the examinations are among the main provisions of Law 64(I)/2015 (The 2015 Law on Insolvency Practitioners).

Training and Licensing:

Provided that they meet the relevant criteria of article 14 of Law 64(I)/2015 (The 2015 Law on Insolvency Practitioners), candidates can file an application to the competent authority to obtain a license to practice the profession of an insolvency practitioner. The competent authority, conducting an audit, approves the application and grants the insolvency practitioner license, while communicating the required details to the Insolvency Department for the update of the public register. The license may be renewed by the competent authority at least 1 month prior to its expiration date provided that the relevant fee has been paid and a valid professional liability insurance has been provided. The Insolvency Department keeps an electronic register of licensed insolvency practitioners and publishes it in its webpage (Registers).

Supervision and Disciplinary Control:

Every competent authority supervises its own licensed insolvency practitioners to ensure their compliance with the provisions of the legislation, the professional standards and the code of ethics. The supervision method is determined by the competent authority, by proportionately applying the method of information collection or by conducting onsite checks. Every competent authority conducts disciplinary control over its own licensed insolvency practitioners. For the insolvency practitioners licensed by the Insolvency Department, the disciplinary control is conducted by a disciplinary committee. In case that an insolvency practitioner is found guilty, he/she is subject to specified disciplinary penalties, including the payment of a fine or even the revocation of his/her license.

Examining Board and Examinations:

A five-member examining board with a 2-year service is responsible for organizing examinations and adequacy tests for insolvency practitioners. The examinations take place at least once per year following a tender published in the Official Gazette of the Republic of Cyprus at least 60 days before the date of the examinations. Each candidate submits an application and pays the fixed fee to the examining board. A table of the successful candidates is published in the Official Gazette of the Republic of Cyprus. In order to be eligible to file an application to obtain an insolvency practitioner license, candidates have to pass the examinations.

Requirements

The competent authority shall grant the license of an insolvency practitioner, if the following criteria apply:

the person is a member of the competent authority which grants the license in which the competent authority is not the Insolvency Department;
the person holds a university degree or an equivalent qualification;
the person has been employed for a minimum period of 3 years prior to the filing of the application in at least one of the professions of a lawyer, legal clerk, certified public accountant, actuarial, clerk or examiner in the Official Recipient and/or the Insolvency Department or a financial professional.
the person has professional experience in the insolvency sector;
the person holds a valid professional liability insurance;
the person has passed the examinations organised or recognised by the Republic of Cyprus;