The Insolvency and Bankruptcy Board of India (IBBI) has issued the IBBI (Model Bye-Laws and Governing Board of Insolvency Professional Agencies) (Second Amendment) Regulations, 2022 mandating the filing of annual compliance certificate to be submitted to the Board.
The amended regulations also prescribe penalty for defaults such as failure to submit disclosures, returns, etc. to Agency or submits inadequate or incorrect disclosures, returns, etc., relating to any assignment, as required under the Code and Regulations made thereunder or bye-laws of the Agency or called upon by the Board or the Agency, accepts an assignment having conflict of interests with the stakeholders, fails to maintain records properly relating to any of his assignments, rejects a claim(s) without giving any proper reason while undertaking an assignment or fails to exercise due diligence in claim verification. etc.
As per the amended regulations, the compliance officer shall submit to the Board, a compliance certificate annually in the format issued by the Board, verifying that the insolvency professional agency has complied with the provisions referred to in sub-regulation (1) provided that the annual compliance certificate shall also be signed by the managing director of the insolvency professional agency.
The amendment further provided that the Insolvency Professional Agency shall facilitate receipt of relationship disclosures from its professional members in accordance with the Insolvency and Bankruptcy Board of India (Insolvency Professionals) Regulations, 2016; (b) disseminate the disclosures on its website in the following format, within three working days of the receipt of the disclosures from its professional member.
A disciplinary proceeding shall be considered as pending against the professional member from the date he has been issued a show cause notice by the Agency or the Board, as the case may be, till its disposal by the Disciplinary Committee of the Agency or the Board, as the case may be.
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