Applying for an Insolvency Practitioner's Licence

Applying for an Insolvency Practitioner’s Licence

To be eligible to hold an insolvency practitioner’s licence, an applicant must fulfil the following criteria:

1. Qualified Person

Section 50(3) of the Insolvency, Restructuring and Dissolution Act 2018 (“IRDA”) requires an applicant to be a “qualified person” who is a:

a) Solicitor

b) Public accountant; or

c) Chartered accountant.

Note:

• “Solicitor” means an advocate and solicitor of the Supreme Court.
  
• “Public accountant” means a person who is registered or deemed to be registered in accordance with the Accountants Act (Cap. 2) as a public accountant.
  
• “Chartered accountant” means a person who is registered or deemed to be registered as a Chartered Accountant of Singapore under the Singapore Accountancy Commission Act 2013.
  

2. Relevant Work Experience

Regulation 5(3) of the Insolvency, Restructuring and Dissolution (Insolvency Practitioners) Regulations 2020 requires an applicant to satisfy at least one of the following requirements:

a) Acted as an insolvency practitioner in relation to a corporation or an individual under the IRDA or under any corresponding previous law;

b) Assisted another person in that person acting as an insolvency practitioner in relation to a corporation or an individual, under the IRDA or under any corresponding previous law, for a minimum of 3 continuous years, of which 2 years must be at a supervisory level; or

c) Acted as a solicitor for a creditor or a debtor in relation to a bankruptcy application, or for a creditor or a bankrupt in relation to the administration of any bankruptcy, under the IRDA or under any corresponding previous law within the last 3 years before the date of the application for a grant of an insolvency practitioner’s licence.

The types of personal or corporate insolvency and / or debt restructuring work include being appointed as:

a) A liquidator or provisional liquidator in Court-ordered / creditors’ voluntary winding up;

b) A receiver or manager;

c) A judicial manager or interim judicial manager;

d) A trustee in a bankruptcy; and / or

e) A nominee in individual voluntary arrangement cases.

Regulation 5(3A) of the Insolvency, Restructuring and Dissolution (Insolvency Practitioners) (Amendment) Regulations 2023 provides that in order to be eligible for the grant or renewal of a licence to act as an insolvency practitioner in relation to a company, or foreign company, that is the subject of any proceedings relating to corporate insolvency, restructuring or dissolution in the Singapore International Commercial Court, the applicant must:

a) Hold, and has held for a minimum of 3 continuous years, the equivalent of an insolvency practitioner’s licence in a foreign jurisdiction; and

b) Has acted as the equivalent of a licensed insolvency practitioner in relation to a corporation under any foreign law, in respect of proceedings relating to corporate insolvency, restructuring or dissolution:

• That are international and commercial in nature; or
  
• Where relief was sought from a court of a foreign jurisdiction under the Model Law as given effect in that jurisdiction.
  
  
  3. “Fit and Proper”
  
  In determining whether an applicant is a “fit and proper” person to hold or continue to hold the insolvency practitioner’s licence, the Licensing Officer may take into account any matter he considers relevant, including any of the following:
  
  a) Whether an applicant has ever had any approved licence(s) issued by the Accounting and Corporate Regulatory Authority (“ACRA”) and / or the Licensing Officer revoked or suspended;
  
  b) Whether an applicant has previously been convicted in Singapore or elsewhere of any offence involving fraud, dishonesty or moral turpitude;
  
  c) Whether an applicant has previously had a judgment entered against him / her in a civil proceedings that involves a finding of fraud, dishonesty or breach of fiduciary duty on his / her part;
  
  d) Whether an applicant has previously received, or is presently receiving any treatment for any mental disorder;
  
  e) Whether an applicant is presently an undischarged bankrupt;
  
  f) Whether an applicant has previously been adjudged a bankrupt in Singapore or under the laws of any foreign country, but has since been discharged from bankruptcy in Singapore or in that foreign country;
  
  g) Whether an applicant has ever been the subject of a disqualification order made under section 149 of the Companies Act (Cap. 50) or a similar order under the laws of any foreign country;
  
  h) Whether an applicant has previously been, or is presently subject to a Voluntary Arrangement and / or Debt Repayment Scheme under the Act or the Bankruptcy Act (Cap. 20), or a similar arrangement or scheme outside Singapore;
  
  i) Whether an applicant has previously been convicted of an offence under the Act, the Bankruptcy Act (Cap. 20) or Companies Act (Cap. 50);
  
  j) Whether an applicant has previously been the subject of any investigation(s) by governmental, statutory or professional bodies in respect of any offence involving dishonesty or any complaint against or involving his / her professional conduct; and
  
  k) Whether an applicant has ever been refused membership to any professional body, or previously had his / her membership or registration with such professional body cancelled, revoked or suspended.