An insolvency professional agency is a consulting firm or insolvency organization registered under IBBI u/s 201 of Insolvency Code, 2016.
The main function of these agencies is to control the activities of insolvency professionals. Also, they make sure that they are emerging in the industry. These professional members must comply with the terms and conditions as restricted in the byelaws of the insolvency agency code. IBBI practices control over insolvency resolution professional agencies and its professionals concerning the complaints registered under section 217 of the Insolvency Code.
What Is the Role of an Insolvency Professional Agency?
Apart from managing and registering the insolvency and bankruptcy professionals, the insolvency resolution professional agency also does the following as specified in section 204 of the Insolvency Code (with effect from 15-11-2016):
- Insolvency professional agency has the main function of providing membership to insolvency professionals.
- These agencies set up the standard of professional conduct and ethics for the members registered under them.
- They safeguard the rights and privileges of the members and protect their interests
- They also make inquiries about the member’s complaints and take steps to settle them.
- The agency constantly supervises members’ performance and suspend/cancel affiliation where and when necessary.