This site uses cookies; by continuing to use our site you agree to our use of cookies. More details in our privacy policy. Close



Turnaround professionals call for transparency 7 January 2014

In the wake of the Tomlinson Report, top European turnaround experts have put emphasis on the need for professional independence and transparency when dealing with distressed businesses.

Senior representatives from the European Association of Certified Turnaround Professionals (EACTP) had spoken out after the report by Government advisor Lawrence Tomlinson exposed the banking industry’s conflict between commercial pressures and duty of care to customers when handling distressed businesses.

Alan Tilley, executive director of the EACTP, said: “Given the culture and internal pressures, a bank profit centre will inevitably be conflicted in rehabilitating distressed businesses and assets. This is not good for the banking industry nor the turnaround and restructuring profession.

“Turnaround professionals also face competing interests, between the commercial pressures to find assignments and the professional independence in undertaking them. Who do they work for? The debtor who pays the bill or the creditor at risk?

“We believe turnaround and restructuring practitioners have a wider duty of care than to vested secured creditor interest. When client mandates depend on approbation from vested interests their independence can be questioned. Recognition of practitioners as members of an independent professional body adds credibility to their status.”

The EACTP provides a recognised certification scheme based on the Turnaround Management Association (TMA) Global Certified Turnaround Professional (CTP) programme.

Tyrone Courtman, President of the EACTP, said: “Achieving and demonstrating the standards required to become a CTP is recognition of the highest level of professional competence and the adherence to a code of professional ethics.

“It equips the professional with cross-professional knowledge, management, law and finance and to act with independence and integrity to approach assignments with an appropriate balance of stakeholder interests in business distress in the zone of insolvency.

“Achieving recognition through an independent body to globally recognised standards gives practitioners an edge and the status to better manage their own commercial and professional conflicts.”



blog comments powered by Disqus