IBBI Discussion Paper for reducing compliance for Insolvency Professionals
Insolvency Professionals (IPs), who are the backbone of the Insolvency and Bankruptcy Code (IBC), may soon get significant compliance relief with IBBI proposing to simplify and optimise various Corporate insolvency-related forms besides streamlining reporting requirements. For this IBBI has come up with a discussion paper -- ‘Reducing Compliance by Review of CIRP Forms Submitted by IPs to IBBI’.
The discussion paper follows the Financial Stability and Development Council’s (FSDC) advice from its May 2023 meeting. FSDC had then urged regulators to adopt a focused approach to reduce the compliance burden and create a streamlined, efficient regulatory environment.
The reform initiative seeks to reduce the amount of information and data that IPs currently need to submit, with a special emphasis on removing duplication, making the reporting process simpler and more efficient. It seeks to adjust compliance deadlines to reduce the pressure caused by numerous and frequently overlapping submission dates, allowing IPs to manage their resources more effectively. IBBI also plans to simplify the compliance process by combining various reporting systems on IPA and IBBI website into a single, centralised IBBI website, eliminating duplication, and making it easier for stakeholders to access and use.
