Ethics of Insolvency Practitioners

In all circumstances, insolvency practitioners must be able to act with complete independence in relation to all the economic and social interests entrusted to them.

This requirement is justified by the large number of interests, often conflicting, that are affected by the occurrence of a failure.

The regulations therefore prohibit them from engaging in any other economic activity or accepting any subordinate relationship that might compromise their independence.

They are also required to step aside in the event of a conflict of interest and, consequently, to refuse to accept any assignment, whether amicable or judicial, in the performance of which they could not guarantee this requirement.

Lastly, the statute requires them to practice their profession exclusively and personally, thereby assuring third parties of the direct involvement of professionals (or their associates) in the performance of the duties entrusted to them.

Insolvency practitioners are bound by professional secrecy in the performance of their duties.

This rule makes it possible to ensure the absolute confidentiality of exchanges and to guarantee the secrecy of consultations as well as the confidentiality of non-public procedures such as conciliation proceedings or ad hoc mandates.

All professionals are required to be members of the AJMJ Guarantee Fund, which protects third parties from the consequences of misconduct involving their civil liability and the non-representation of funds entrusted to them.

They are required to use dedicated, approved accounting software to ensure maximum transparency in the use of these funds.

Lastly, their special accounts are certified by a statutory auditor twice a year.

The complexity of the tasks and the stakes involved in the missions they carry out, in a difficult context, require professionals to behave in a way that is consistent with the requirements of their functions.

Under the terms of art. 110.1 of the professional rules, they are required to carry out their duties “with dignity, independence, probity, humanity, loyalty and confraternity in accordance with their professional oath”.

Compliance with these guiding principles is ensured by the body of professional rules governing relations between professionals, with third parties and with judicial authorities.

These rules define their duties in all areas of their activities, both private and professional.

The National Council ensures compliance with these rules through regular inspections and the handling of claims.

Insolvency practitioners are subject to periodic and occasional inspection by their peers, as well as by statutory auditors.

They are subject to the supervision of the public prosecutor.

They may also be subject to inspections under the authority of a regional inspecting magistrate.

Lastly, they are subject to discipline by a national commission, the National Registration and Disciplinary Committee (CNID- Commission Nationale d’Inscription et de Discipline), which is completely independent of the profession and is made up mainly of judges and senior civil servants.

At the request of the President of the National Council or the judicial authorities, the CNID has the power to sanction professionals who breach the rules of professional conduct.

These sanctions may lead to disbarment.