ARIES launch Guernsey Insolvency Practice Statements03 May 2017
Today ARIES, the Association of Restructuring and Insolvency Experts, being the Channel Islands member of INSOL International, has produced Guernsey Insolvency Practice Statements (“GIPS”). These are a voluntary initiative launched in Guernsey intended for use by its members and other professionals practising in the area of restructuring and insolvency.
The GIPS were produced following a period of consultation with ARIES members and other parties. The GIPS cover the following topics:
GIPS1: Introduction to GIPS
GIPS2: Practitioners’ investigations
GIPS3: Disqualification of directors
GIPS4: Creditors’ meetings
GIPS5: Pre-packaged sales of business
The GIPS set 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.”
Alasdair Davidson, partner at Bedell Cristin and also a member of the ARIES Legal and Regulatory Committee observed that:
"The publication of the GIPS demonstrates the initiative and expertise of the insolvency specialists in Guernsey and credit is due to Ben and the rest of the team behind them. They are a welcome addition to the strong foundations of professional standards in our jurisdiction."