ARIES, the Association of Restructuring and Insolvency Experts, being the Channel Islands member of INSOL International, has produced Guernsey Insolvency Practice Statements (“GIPS”) for use by its members and other professionals practicing in the area of restructuring and insolvency. The GIPS were officially launched 3 May 2017, following a period of consultation with ARIES members and other parties. The GIPS cover the following topics:
The GIPS are a voluntary industry initiative setting out best practice principles and compliance standards with which practitioners are encouraged to comply. They serve to bridge a gap in the current Guernsey legal framework, and are designed to complement the proposed Guernsey insolvency law reform, which includes a requirement for practitioners to report director misconduct, and gives greater emphasis on the protection of creditors.
Ben Rhodes, a member of the ARIES Legal and Regulatory Committee who assisted with drafting the GIPS commented as follows:
“The GIPS represent a positive step forward in Guernsey’s insolvency framework. They provide practical guidance to practitioners, in areas where there is currently uncertainty. The GIPS will help to protect the interests of creditors and will encourage disqualification proceedings against delinquent directors.”
You can also access a video of GIPS training seminar provided by ARIES on 27 March 2017 here.