Criteria published for registering as a bankruptcy expert in UAE
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Publications: 02 November 2022
In a development which will be of interest to those in the restructuring community, the UAE’s Financial Reorganization Committee (the FRC) has codified, via an Approved Guide1, the steps that insolvency practitioners will need to take to register as bankruptcy experts for the purposes of assisting with formal bankruptcy proceedings in the UAE.
Whilst the Approved Guide was formally approved by the FRC on 4 May 2020, the full text of the Approved Guide was only published in the Official Gazette on 28 February 2021.
Recognising the specialist skillset and experience which is required when dealing with matters of bankruptcy and restructuring, the Approved Guide provides, for the first time, a bespoke set of criteria for those wishing to be listed as ‘bankruptcy experts’ on the Experts’ Roster.
The Approved Guide consists of mandatory requirements for registration (the Conditions) and measures for classifying an Expert into one of three categories or levels of qualifications and experience (the Standards). The Approved Guide also sets out the requirements for promotion of an Expert from one category or level of experience to the next level. Finally, the Approved Guide provides a list of obligations that an Expert must fulfil after appointment to the Experts’ Roster.
We consider the publication of the Approved Guide to be a further positive development in the evolution of the UAE’s bankruptcy regime. As with any new regime, the proof will ultimately lie in how this is implemented and utilised in practice. In this regard, it will be telling how many experienced insolvency practitioners now take the necessary steps to become registered.
1The Approved Guide to Conditions and Standards for Registration in the Experts’ Roster Regarding Financial Reorganization, Composition, Liquidation, Bankruptcy, and Insolvency in the United Arab Emirates.
Read the full summary by downloading the PDF below.