Preventing insolvency or granting second chances to “honest” entrepreneurs who do not make it the first time around improves the business environment and stimulates growth and jobs.

This paper provides an overview of accountants’ and auditors’ current contribution to insolvency proceedings in Europe based on the experience of our 50 Member Bodies. This is in support of the proposed EC Directive for an effective insolvency framework which signalled the role of insolvency practitioners, including the accountancy profession.
We also present our recommendations for improving insolvency proceedings in Europe to stimulate the discussion with the Member States and the European Parliament:

• involve practitioners with specialised expertise
• reduce the length of insolvency proceedings
• improve awareness on help available
• encourage management’s role in financial distress

We welcome any feedback you have on this paper.