Indian Institute of Insolvency Professionals of ICAI (IIIPI) has decided that the peer review of Insolvency Professional Entities (IPEs) would henceforth be undertaken using a two-fold approach.
While the first one would be on the work done by IPE as an IP (conducting assignments under the IBC), the additional one, decided now, would be on the adequacy or otherwise of the infrastructure/capacity support provided by them to the IPs.
This decision was taken in the recent Governing Board meeting of IIIPI. It is expected to enable the IPEs to undertake Corporate Insolvency Resolution Professional (CIRP) efficiently.
“We have decided to promote peer review mechanism for IPEs as juristic IPs, including support services such as managing end-to-end processes comprising support in claim verification, managing operation of corporate debtor, evaluation of resolution plan, etc., provided by them to IPs,” Ashok Haldia, Chairman, IIIPI-Governing Board, said.
“This will improve outcomes of processes under the IBC. The outcomes of peer review will also be suitably put up on the IIIPI’s website”.
The list of peer-reviewed IPs can be referred to by the adjudicating authorities (NCLTs) and other stakeholders while appointing IPs, Haldia added.
Peer review is conducted by experienced IPs and aims at benchmarking the professional services under review to help improving performance, decision making, adoption of best practices and standards including ethics, compliance with relevant laws, established standards, and principles with respect to professional assignments under the IBC.
The peer review is mandatory for IIIPI’s members (IPs and IPEs) who have handled or are handling ten or more cases of Corporate Insolvency Resolution Process (CIRP)/Liquidation in the past three years since the launch of the peer review Framework of IIIPI in July 2022.
IIIPI, which has been promoted by the Institute of Chartered Accountants of India (ICAI), is the largest frontline regulator under the Insolvency and Bankruptcy Code (IBC) with about 63 per cent of Insolvency Professionals as its members.