A 683
I assent.
(L.S.) GEORGE VELLA
President
23rd December, 2022
ACT No. XXV of 2022
AN ACT to provide for the trans position of Directive (EU) 2019/
1023, and to regulate the insolven cy practitioner, and to make
provision for matters ancillary or incidental thereto or connected
therewith.
BE IT ENACTED by the President, by and with the advice and
consent of the House of Representatives, in this present Parlia ment
assembled, and by the authority of the same as follows:-
PART I 
Preliminary Provisions
Short title and 
scope.1. (1) The short title of this Act is the Insolvency Practitioners
Act, 2022.
(2) The scope of this Act is to provide for a modern framework to
strengthen the efficiency and effe ctiveness of the existing leg islative
framework relating to insolvency through regulati on of the acti vities of
insolvency practitioners, and to partially transpose Directive (EU)
2019/1023 of the European Parliame nt and of the Council of 20 J une
2019 on preventive res tructuring frameworks, on discharge of debt and
disqualifications, and on measures to increase the efficiency o f
procedures concerning restructuri ng, insolvency and discharge o f debt,
and amending Directive (EU) 2017/1132 (Directive on restructuring
and insolvency).
VERŻJONI ELETTRONIKA
A 684
Interpretation. 2. In this Act, unless the context otherwise requires: 
S.L. 595.27. "competent authority" means the Insolvency and Receivership
Service within the Malta Business Registry established by the M alta
Business Registry (Establishment as an Agency) Order;
"connected undertaking" means an undertaking which is effective ly
managed or promoted as one practice with the registered firm or  as a
related undertaking of t he registered firm;
"EEA State" means a state which is a contracting party to the
agreement on the European Economic  Area signed in Porto on 2 Ma y
1992 as amended by the Protocol signed in Brussels on 17 March
1993, and as amended by any subsequent Acts;
"insolvency practitioner" means a  person who is authorised, by the
competent authority, to carry out  the functions of an insolvenc y
practitioner in accordan ce with article 4(2);
"Minister" means the Minister responsible for the Malta Busines s
Registry;
"principal" means every member of the administrative or
management body of a registered firm, and shall include any per son
who is authorised to represent the registered firm for any judi cial or
legal purpose, and any person who is responsible for directing the
fulfilment of any engagements taken on by the registered firm; 
"recognised jurisdiction" means a state that is a member of the
European Union or an EEA State, or any other jurisdiction appro ved
by notice of the Minister from time to time for the purpose of this
definition;
"registered firm" means an entity, regardless of its legal form ,
formed in accordance with articl e 6 and any connected undertaki ng;
and
Cap. 490. "Tribunal" means the Administrat ive Review Tribunal established
by article 5(1) of the Administrative Justice Act.
PART II 
Authorisation to Act as Insolvency Practitioner 
Eligibility for 
authorisation to 
act as 
insolvency practitioner.3. (1) No person shall exercise the functions of an insolvency
practitioner in terms of articl e 4, or hold hims elf out as bein g available
to act as an insolvency practiti oner, unless he is duly authori sed by the
competent authority.
(2) A person shall not qualify for  an authorisation under articl e 4
VERŻJONI ELETTRONIKA
A 685
unless such person:
(a) is authorised to exercise the profession of an
advocate, accountant or auditor, w hether in Malta or in another
recognised jurisdiction, or holds such other qualification as t he
competent authority may, by d irective, prescribe as being
sufficient: 
Provided that the issuance of an authorisation to act
as an insolvency practitioner in terms of this Act shall not, o f
itself, entitle such person to carry out the functions of an
advocate, accountant or auditor, w hether in Malta or in another
recognised jurisdiction, where the person would not otherwise b e
so authorised;
(b) has satisfied the competent authority that he
possesses sufficient competence in the fields of expertise
pertinent to the performance of  the functions of an insolvency
practitioner, as may, from time to time, be further defined indirectives issued by the competent authority under this Act; 
(c) has satisfied the competent  authority that he is fit and
proper to carry out the functions  of an insolvency practitioner ,
and has not had any previous a uthorisation granted under this
Act withdrawn due to misconduct; and
(d) has satisfied such other additional criteria or
requirements as may, from time to time, be further provided forin any regulations or directives made under this Act.
(3) A person shall not qualify for an authorisation in terms of
article 4 where:
(a) he is interdicted, incapacitated or is an undischarged
bankrupt; 
(b) he has been convicted of an y of the crimes affecting
public trust or of theft or of  fraud or of knowingly receiving
property obtained by theft or fraud; 
(c) he is a minor who has  not been emancipated; or
Cap. 386. (d) he is subject to a disqualification order in terms of
article 320 of the Companies Act.
(4) Any person who, for the purpose of obtaining an authorisatio n
under this Act, gives any false information or otherwise acts i n a
deceitful or fraudulent manner, shall be guilty of an offence and shall,
VERŻJONI ELETTRONIKA
A 686
on conviction, be liable for each offence to a fine ( multa ) not
exceeding twelve thousand euro (€12,000) or to imprisonment of not
more than twelve (12) months or to both such fine and imprisonm ent.
(5) Subject to the provisions of ar ticle 4, any person who carri es
out the functions of an insolve ncy practitioner without being
authorised to do so under this Act , or holds himself out to a t hird party
as being a person who is authorised to act as an insolvency pra ctitioner
when he is not so authorised, shall, on conviction, be liable f or each
offence to a fine ( multa ) not exceeding twen ty-five thousand euro
(€25,000) or to imprisonment of not less than two (2) years and  not
more than five (5) years, or t o both such fine and imprisonment .
Authorisation to 
act as insolvency 
practitioner.4. (1) An authorisation to exercise the functions of an
insolvency practitioner shall be issued by the competent author ity
following an application by any p erson who, in the view of the
competent authority, has satisfied the requirements of article 3 and
such other conditions as the competent authority may, by direct ives,
prescribe. 
(2) Notwithstanding the provisions of any other law, an
authorisation issued by the co mpetent authority shall entitle t he
insolvency practitioner to:
Act No. XXIV 
of 2022.(a) act as an insolvency practitioner for the purposes of
the Pre-Insolvency Act, 2022;
Cap. 13. (b) act as a bankruptcy trustee for the purposes of Part III
of the Commercial Code; 
Cap. 386. (c) act as a liquidator, special controller, administrator,
provisional administrator, or spe c i a l  m a n a g e r  i n  t e r m s  o f  t h e
Companies Act; and
(d) carry out any other function requiring the
competence of an insolvency practitioner as may be provided for
in any other law, or as the competent authority may, by
directives, prescribe. 
(3) Notwithstanding the provisions  of this article, the competen t
authority may at its own discretion provide for different categ ories of
authorisations.The competent aut hority may also, at its own dis cretion,
limit the provision of services by the insolvency practitioners  so
authorised to one (1) or more categories only.
(4) The Minister, acting on the recommendation of the competent
authority, may, from time to time, make regulations to ensure t hat any
function performed by the insolvency practitioner in terms of s ub-
VERŻJONI ELETTRONIKA
A 687
article (2)(c) is subject to oversight, supervision and regulat ion that is
at least commensurate with t he provisions of this Act. 
(5) For the purposes of this Act, a person shall not be deemed t o
be exercising the functions of an insolvency practitioner where  such
person is acting as the employee or assistant of an insolvency
practitioner and takes no material decisions without the expres s
direction of the insolvency practitioner:
Provided that such a person may not hold himself out as an
insolvency practitioner in terms of article 5. 
Designation of 
insolvency 
practitioner.5. (1) An insolvency practitioner shall be entitled to use the
designation "insolvency practitioner" and the abbreviation "IP" .
(2) Any person who, not being an insolvency practitioner,
assumes the title or designation of "insolvency practitioner" o r its
abbreviation "IP", or in any ot her manner falsely indicates entitlement
to exercise the functions of an  insolvency practitioner in Malt a, shall
be guilty of an offence and shall, on conviction, be liable for  each
offence to a fine ( multa ) not exceeding two thousand and three
hundred euro (€2,300) and in resp ect of a second or subsequent
offence to imprisonment for not more than three (3) months or t o both
such fine and imprisonment:
Provided that the use on any card, letterhead, sign, board,
plate, or other written, printed or engraved device, instrument  or
document, of the words "insolven cy practitioner" or the abbreviation
"IP", whether in the singular or plural form, in relation to a name, shall
be sufficient evidence of the k nowledge of such use by the pers on in
relation to whose name the said w ords or abbreviations are used ,
unless such person proves that the use was made without his
knowledge and that, upon becoming aware of the use, he took
adequate steps to stop it.
Registered 
firms.6. (1) Any entity which provides evidence to the satisfaction of
the competent authority that it is capable of satisfying the re quirements
of this Act, shall be entitled to be registered with the compet ent authority
as a registered firm and, subjec t to compliance at all times wi th the
requirements of this Act, shall,  upon registration, be authoris ed to carry
out the functions of an insolvency practitioner in terms of art icle 4(2):
Provided that the competent authority may, at its own
discretion, provide for different  categories of authorisations.  The
competent authority may also, at its own discretion, limit the provision
of services by the insolvency practitioners so authorised to on e (1) or
more categories only.
VERŻJONI ELETTRONIKA
A 688
(2) The responsibility for the performance of any act or functio n
referred to in article 4(2) by a registered firm shall, at all times, be
assumed by at least one (1) principal, being an insolvency prac titioner,
who shall be the person under wh ose instruction that act or fun ction
shall be carried out. Upon assuming such responsibility a princ ipal or
insolvency practitioner, shall become, and at all times remain,  jointly
and severally liable with the re gistered firm for any act or fu nction
carried out by the registered firm or by any officer, principal , agent, or
employee thereof:
 Provided that, where more than one (1) principal or insolvency
practitioner has assume d the said responsib ility, such persons shall be
jointly and severally liable:
Provided further that the registered firm shall, without undue
delay, furnish the competent authority with such information as  the
competent authority may reasonabl y require or as may be prescri bed in
this Act and any regulations or directives issued in terms of t his Act, or
any other relevant law regarding  the insolvency practitioner or
insolvency practitioners who are responsible for any act or fun ction
carried out by a registered firm in terms of article 4(2).
(3) A registered firm may hold it self out as being a registered
firm in, or together with, its name, as the case may be.
(4) Upon the registration of the r egistered firm in terms of this
article, the principals shall, for so long as the registered fi rm is
registered, be authorised to act in the name and on behalf of t he
registered firm.
Designation of 
registered firms.7. (1) A registered firm shall be e ntitled to use the designation
of "insolvency practitioners" and the abbreviation "IPs".
(2) Any entity which makes use of the designation of "insolvency
practitioners" or the abbreviation "IPs", in relation to a firm  or entity
that is not registered in terms o f article 6 or which does not satisfy the
requirements of article 6, or which knowingly makes use of a na me
falsely implying the existence of  a registered firm, or which d oes any
other act with the intention to c reate the belief that any one of the facts
aforesaid exists when in fact it does not, shall be guilty of a n offence
and shall, on conviction, be liable for each offence, in respect of a first
offence to a fine ( multa ) not exceeding two t housand and five hundred
euro (€2,500), and in respect of a second or subsequent offence  to a
fine ( multa ) not exceeding twelve thousand euro (€12,000) or to
imprisonment for not more than three (3) months or to both such
imprisonment and fine, and in the case of a continuing offence to an
additional fine ( multa ) not exceeding two hundred and fifty euro
VERŻJONI ELETTRONIKA
A 689
(€250) for each day during which the offence continues:
Provided that the use on any card, letterhead, sign, board,
plate, advertisement or other written, printed or engraved devi ce,
instrument or document, of the words "insolv ency practitioners" or the
abbreviation "IPs", whether in the singular or plural form, in relation
to a name, shall be sufficient evidence of the knowledge of such use by
the person in relation to whose name the said words or abbrevia tions
are used, unless such person prov es that the use was made witho ut his
knowledge and that, upon becoming aware of the use, he took
adequate steps to stop it.
PART III
The Competent Authority
The competent 
authority.8. (1) The competent authority shall be vested with the
responsibility and authority to re gulate the activities of inso lvency
practitioners and regist ered firms in the pe rformance of their functions
in terms of article 4(2). The competent authority may also appo int
committees, of which the chair man shall be a member of the
competent authority, thereby establishing their remit and
remuneration, and shall otherwise assume competence for such ot her
functions as may be specified by this Act or as may by notice b e
prescribed by the Ministe r from time to time. 
(2) In the performance of its functions in terms of this Act, th e
competent authority:
( a ) s h a l l  m a k e  i t s  o w n  r u l e s  and otherwise regulate its
own procedure; and
(b) shall make use of such funds as the Minister or the
Malta Business Registry may from time to time make availableto it, as well as such funds as it may collect from any
administrative penalties or fees or otherwise in terms of any
regulations made under this Act. 
Functions of the 
competent 
authority.9. (1) The competent authority shall regulate the activities of
insolvency practitioners and registered firms in the performanc e of
their functions in terms of article 4(2), and shall also have t he
following functions:
(a) to consider applications for the issuance of
authorisations in terms of artic le 4 and registrations in terms  of
article 6;
 (b) to oversee and regulate the conduct of insolvency
practitioners and registered firms in the exercise of their
VERŻJONI ELETTRONIKA
A 690
functions in terms of article 4(2), and to establish appropriat e
mechanisms and procedures as the competent authority may
deem conducive to the efficient and effective oversight andregulation of the activities thereof;
(c) to collaborate with the J udicial Studies Committee or
any other body responsible for the training of members of thejudicial authorities to ensure that members of the judicial
authorities responsible for adjudicating matters in relation to  those
functions listed in article 4(2 ), receive suitable training;
(d) to ensure that insolvency practitioners receive, and
are compelled to attend, suitable training on an ongoing basisthat shall be conducive to the e ffective performance of their
functions. In the event of a failure by the insolvency practitionerto comply with any requirements as may be prescribed by thecompetent authority from time to time in this regard, the
competent authority shall impose any administrative penalties,other measures, or take any further action in terms of articles  18
or 19 as the competent authority may deem appropriate;
(e) to publish supplementary rules regulating the manner
in which insolvency practitioners  and registered firms are to b e
remunerated in connection with the performance of their
functions in terms of article 4(2), if and as the competent
authority deems necessary;
(f) to develop, publish, and maintain or adopt, a code of
practice providing guidance on the required conduct ofinsolvency practitioners in the fulfilment of their functions i n
terms of article 4(2) and their adherence to the provisions of this
Act, if and as the competent authority considers necessary;
(g) to initiate and conduct investigations, as and when
necessary, in relation to the compliance of insolvency
practitioners and registered fir ms with the provisions of this Act;
(h) to address cases of prof essional misconduct and other
disciplinary proceedings in resp ect of insolvency practitioners  or
registered firms who, by act or omission, violate the provision s
of this Act, any regulations or directives made under it and, o r
any rules which the competent authority adopts by directive,including rules contained in a published code of conduct;
(i) to distribute and dissem inate knowledge  to the public
about the role and functions of the insolvency practitioner and
registered firms and the options  available to debtors in financ ial
VERŻJONI ELETTRONIKA
A 691
distress, and any other matter as the competent authority may
deem relevant;
(j) to take such measures as may be reasonably
necessary to protect the public interest and the integrity of t he
role of insolvency practitioners, including the placing of
restrictions, the imposition of a dministrative penalties and ot her
similar measures on insolvency  practitioners and registered
firms, or upon any person holding itself out as an insolvencypractitioner, or upon any person performing such functions
whether subsequent to an authorisation by the competent
authority or not, which unless ot herwise stated in this Act sha ll
not exceed, for each individual incident, twelve thousand euro
(€12,000) for an insolvency practitioner or twelve thousand eur o
(€12,000) for a registered firm, and, in addition, the competen t
authority may also impose dail y administrative penalties, not
exceeding one hundred and fifty euro (€150) per day on
insolvency practitioners who fail to comply with the orders ordirections of the competent authority;
Act No, XXIV 
of 2022
Cap. 13. 
Cap. 386. 
Cap. 16. (k) to advise, make recommendations or otherwise
express its views to the Minis ter on how the procedures made
available in terms of the Pre-Insolvency Act, 2022, Part III of  the
Commercial Code, or insolvenc y proceedings in terms of the
Companies Act or the Civil Code as applicable, may be
conducted in an efficient manne r to expedite treatment of
procedures;
(l) to advise, or make recommendations or otherwise
express its views to the Ministe r on any other matter which the
Minister is to consult with the c ompetent authority, or on whic h
the competent authority is t o make recommendations to the
Minister, or on which the views of the competent authority are
sought by the Minister;
(m) to facilitate the incl usion, by promoting in any
manner it may deem necessary, the use of electronic means of
communication in the course of th e procedures in terms of artic le
4(2), including with respect to:
(i) the filing of claim s and applications;
Act No. XXIV 
of 2022
Cap. 13. (ii) the submission of a proposed restructuring
plan, in terms of the Pre-Insolvency Act, 2022  or the
submission of the proposed te rms of a debt agreement or
bankruptcy order in terms of the Commercial Code;
(iii) the notifications to creditors; 
VERŻJONI ELETTRONIKA
A 692
(iv) the holding of sit tings and meetings;
(v) voting at all such sittings or meetings; and 
(vi) the lodging of challenges, objections and
appeals.
(n) to inform any authority th at it deems appropriate of
any sanctions or restrictions im posed by it or any other matter s
that the competent authority considers necessary to protect the
public interest, on any insolvency  practitioner or registered f irm; 
(o) to publish guidelines on the interpretation of this Act
and any regulations or directives issued under it, if and as th e
competent authority may deem necessary; and
(p) to collect and aggregate data in accordance with Part
VII of this Act.
(2) The competent authority sh all also publish annual reports
intended to summarise its annual  activities and the performance  of its
functions during the respective y ear, covering also the develop ment of
the role and functions of inso lvency practitioners in Malta, an d to
provide information on recommendations issued and the resultsthereof, as well as on the curre nt supervisory and oversight
mechanisms employed by the compe tent authority, and such other
things as the competent authority may deem relevant.
Register of 
insolvency 
practitioners.10. (1) The competent authority shall establish and maintain a
public register to be known as the Register of Insolvency Pract itioners,
hereinafter referred to as the "Register", that shall separatel y identify
the following:
 (a) the insolvency practitioners; 
(b) the registered firms;
(c) any categorisation of the functions of each
insolvency practitioner, and the extent of the authorisation of
each insolvency practitione r and registered firm;
(d) the insolvency practitione rs whose authorisation has
been suspended, revoked or withdrawn in full or in part by
reference to any category of authorisation;
(e) the registered firms whose registration has been
suspended, revoked or withdrawn in  full or in part by reference
to any category of authorisation; and
VERŻJONI ELETTRONIKA
A 693
(f) the insolvency practitione rs or registered firms who
are deemed by the competent authority to be in default of their
obligations in terms of this Act or of any regulat ions or direc tives
made under it.
( 2 ) T h e  d e t a i l s  k e p t  i n  t h e  R e g i s t e r  s h a l l  i n c l u d e  t h e  f o l l o w i n g
details: 
(a) the name and surname, in the case of an insolvency
practitioner, or the name and de signation of the type of legal
entity of the registered firm, in the case of a registered firm ;
(b) the office address and electronic mail address of each
insolvency practitioner and registered firm; and
(c) in the case of a registered firm, a list of the insolvency
practitioners and the informati on of the insolvency practitione rs
employed or otherwise connected  with that registered firm in
terms of paragraph (a):
Provided that the Minister may, upon the recommendation of
the competent authority, prescrib e further details to be kept i n the
Register.
(3) The competent authority shall be authorised to receive furth er
information from insolvency practitioners including:
(a) the date of birth, and identity card number or passport
number of the insolvency practitioners, and in the case of theregistered firms the registrati on number of the registered firm , and
the information in terms of this article in relation to any ins olvency
practitioner employed or otherwi se connected with the registere d
firm;
(b) the warrant or licence number of the insolvency
practitioners. 
(4) Every insolvency practitione r and registered firm shall submit
to the competent authority any in formation require d in terms of  this
article, and shall update the competent authority of any changeswithout unnecessary delay and in no case later than fourteen (1 4) days
of such change. 
(5) Any change in the office address or electroni c mail address of
an insolvency practitioner or registered firm shall become effectiveagainst the competent authority within fourteen (14) days from the day
it notifies the competent authority with the change.
VERŻJONI ELETTRONIKA
A 694
Powers of the 
competent 
authority.11. (1) The competent authority shall have all the supervisory
and investigatory powers that are  necessary for the exercise of its
functions under this Act, including but not limited to the powe r:
(a) to request data, information, or documentation held
by any person in any form, as may be relevant to the carrying out
of the competent authority’s f unctions and to receive or take a
copy thereof;
(b) to obtain information related, in any manner, to the
performance, by any person, of functions pertaining to an
insolvency practitione r or registered firm;
(c) to carry out on-site inspections of the working
premises of the insolvency practitioners or registered firm; 
(d) to appoint experts to car ry out verifications or
investigations; 
(e) to impose the administrative penalties, and other
measures available to it in terms of article 18; and
(f) to refer matters for criminal prosecution:
Provided that the powers made  available to the competent
authority in terms of this article may be exercised by the comp etent
authority alone, or in collabora tion with other authorities, or by
application to any competent judicial authority.
(2) In the exercise of its functi ons in terms of article 9, the
competent authority may consult with such persons as it may dee m
appropriate, and may also appoint committees, of which the chai rman
shall be a member of the competent authority, thereby establish ing
their remit and remuneration, for the carrying out of such stud ies or
other work as the competent auth ority may assign to them, inclu ding
but not limited to, the establishment and operation of a system  of
quality assurance.
(3) The competent authority shall be empowered to exchange
confidential information with the competent authorities of othe r
Member States.
Cap. 586.(4) The processing of personal data processed in the exercise of
the supervisory and investigator y powers pursuant to this artic le shall
be carried out in accordance with the Data Protection Act andRegulation (EU) 2016/679 of the European Parliament and of the
Council of 27 April 2016 on the protection of natural persons w ith
regard to the processing of personal data and on the free movem ent of
VERŻJONI ELETTRONIKA
A 695
such data, and repealing Directive 95/46/EC (General Data Prote ction
Regulation).
Regulations. 12. The Minister may, on the recommendation of the competent
authority, make regulations not inconsistent with the provision s of this
Act, to give better effect to an y of such provisions and genera lly to
regulate the role and functions o f insolvency practitioners and
registered firms, and, without pr ejudice to the generality of t he
foregoing, such regulations may in particular include provisions with
respect to the punishments or administrative penalties to which  a
person may become liable, or other consequences or effects in t he
event of any violation or non-c ompliance with any provision of this
Act or of any regulation or directive issued under it.
Directives. 13. (1) The competent authority  may issue directives or
guidelines regulating the activity of insolvency practitioners or
registered firms  on the following:
(a) the establishment and de finition of procedures and
generally accepted pr ocedures applicable in the performance of
the functions of an insolvency pr actitioner in terms of article
4(2);
(b) criteria for eligibility to  receive an authorisation in
terms of this Act and the manner in which the competentauthority shall determine the competence of applicants for anauthorisation in the pertinent fields of expertise;
(c) conduct of insolvency pr actitioners and registered
firms and the required standards of quality control, competence ,
integrity and independence;
(d) clients’ accounts and monies held on behalf of clients
and third parties; 
(e) continued professi onal education; 
(f) the provision of such information as may be required
from insolvency practitioners and registered firms by thecompetent authority in order to enable it to carry out any of i ts
functions under this Act; 
(g) the establishment of a system of registration and
renewals for an authorisation or  registration issued in terms o f
this Act; 
(h) the meaning and interpretation of any provision of
this Act and of any regulations or directives issued under it; or
VERŻJONI ELETTRONIKA
A 696
(i) such other matters as may be prescribed by
regulation.
(2) Directives and guidelines issu ed in terms of sub-article (1)
shall be published by the competent authority in such manner so  as to
ensure effective diss emination thereof. 
(3) Directives and guidelines issu ed in terms of sub-article (1)
shall not become operative before  the lapse of one week from th e
publication made in terms of sub-article (2), or such later date as may
be specified therein.
PART IV 
Conduct of Insolvency Practitioners
Duty to provide 
information.14. (1) Every insolvency practiti oner or registered firm shall
provide the competent authority with such information as the
competent authority may reasonably require, or as may be prescr ibed
in directives issued by the competent authority under this Act,  and
shall give notice to the compete nt authority of any relevant ch ange in
any information previously given  to it within fourteen (14) day s after
the date on which the change occurs.
(2) Where, in the course of an i nvestigation carried on by the
competent authority, an insolvency practitioner or registered f irm
intentionally alters, hides or fails to disclose, or otherwise suppresses
information relevant to an investigation or that the competent authority
demands to see in pursuance of its functions under article 11, the
insolvency practitioner, or inso lvency practitioners being responsible
for the performance of a registered firm’s functions in terms o f article
4(2), shall on conviction be liable to a term of imprisonment o f not less
than three (3) months and not more than two (2) years, or to a fine
(multa) not exceeding fifty thousand euro (€50,000), or to both  such
fine (multa) and imprisonment. 
Removal or 
resignation of 
an insolvency practitioner.15. (1) Without prejudice to any other law regulating the
removal, resignation or substitut ion of an insolvency practitioner or
registered firm, an insolvency practitioner or registered firm shall, in
the case of their removal or resi gnation from an engagement to carry
out a function listed in article 4(2) during their term of appo intment,
inform the competent authority in writing of such removal orresignation, and shall, in the ev ent of a resignation, give ade quate
explanations for the reasons thereof. 
(2) The notification re ferred to in sub-article (1) shall be made
within fourteen (14) days
/g3from the removal or res ignation as the case
may be.
VERŻJONI ELETTRONIKA
A 697
Breach of 
professional 
duty.16. Every person who acts in breach of his professional duties in
the exercise of his functions as an insolvency practitioner, sh all, if such
act or omission amounts  to gross negligence , bad faith or serious
misconduct, be liable on conviction to imprisonment for a perio d of
not less than one (1) year and not exceeding five (5) years, an d the
court may also inflict on such person a fine (multa) not exceeding sixty
thousand euro (€60,000).
Exemption from 
liability or 
responsibility.17. Any agreement or arrangement purporting to exempt an
insolvency practitioner or registered firm from any liability,
responsibility or duty relative to the execution of the functio ns in terms
of article 4(2), except under a policy of insurance to indemnif y the
insolvency practitioner against any such liability or responsibility,shall be null and void.
Administrative 
penalties, and other measures.18. (1) In the case of a breach of any of the provisions of this
Act, or of any regulations or di rectives issued under it, the c ompetent
authority shall have the power to issue administrative penaltie s and
reprimands, and to take such other measures as it may deem
appropriate according to the circumstances of the case. 
(2) The competent authority shal l have the power to take, or
impose, at least the following administrative penalties and oth er
measures for breaches of the provisions of the rules under this  Act or
any regulations or direc tives issued under it:
(a) a notice requiring the person responsible for the
breach to cease the conduct and to  abstain from any repetition of
that conduct, which notice sha ll also be communicated to any
other regulatory or supervisory authority to whose regulationsuch person may be subject; 
(b) a public statement which indicates the person
responsible and the nature of the breach, published on thewebsite of the competent authority; 
(c) a temporary prohibition, of up to three (3) years’
duration, banning the insolvency practitioner or registered fir m
from acting as an insolvency practitioner in terms of article 4 (2);
and
(d) the imposition of admin istrative penalties in
accordance with article 9(1)(j).
(3) When determining the type and level of administrative
penalties and other measures men tioned in sub-article (2) or ot herwise
in terms of this Act, the compete nt authority shall take into a ccount all
relevant circumstances, inc luding, without limitation to:
VERŻJONI ELETTRONIKA
A 698
(a) the gravity and t he duration of the breach;
(b) the degree of responsibility of the responsible person; 
(c) the financial strength of the responsible person, by
reference to the annual income or total turnover thereof, as th e
case may be; 
(d) the level of cooperation of the responsible person
with the competent authority; and
(e) previous breaches by the responsible legal or natural
person.
Revocation, 
suspension and 
cancellation of authorisation.19. (1) Without prejudice to any administrative penalties, or
other measures that may be imposed in terms of article 18, the
competent authority may order that an authorisation or registration
issued in terms of this Act may be revoked, cancelled, suspende d, or
subjected to other cond itions or restricti ons ordered by the competent
authority, in accordance with the provisions of this article, i f the
person to whom such authorisation was issued or the registered firm or
any of the principals of the registered firm:
(a) has been found, in the course of an investigation
conducted by the competent author ity, to have acted, including
through omissions, in:
(i) bad faith, serious misconduct or gross
negligence in the exercise of h is functions as an insolvency
practitioner or registered firm;
(ii) violation of any regul ation made or directive
issued in terms of this Act, where the regulation or
directive provides for th e suspension, cancellation,
withdrawal or subjection to c onditions of an authorisation
or registration as a consequence of such violation; 
(iii) violation of any regul ations or directives with
respect to professional standards, practices or integrity; 
(iv) violation of any code of conduct issued or
adopted by the competent authority;
(v) a grievous discreditabl e manner to insolvency
practitioners; or
(vi) a manner which fails to comply with any
condition attached to an authorisation or registration when
VERŻJONI ELETTRONIKA
A 699
such failure is of a material nature;
(b) has been found guilty by a court of law:
(i) of an offence under this Act or any regulations
made thereunder; 
Cap. 386. (ii) of an offence under the Companies Act; or
(iii) of a crime affecting public trust or of theft or of
fraud or of knowingly receiving property obtained by theft
or fraud or of any crime punishable by a term ofimprisonment exceeding one (1) year.
(2) Without prejudice to the provisions of sub-article (1):
(a) an authorisation may be  withdrawn or cancelled by
the competent authority at the request of the insolvency
practitioner; 
(b) the registration of a registered firm may be cancelled
by the competent authority at the request of the registered firm; 
(c) an authorisation may be revoked or cancelled by
order of the competent authority, whenever the competent
authority is of the opinion that there are material circumstanc es
concerning the insolvency practitioner that, had the authorisat ion
not been issued, would disqualify such person from beingeligible in terms of article 3; and
(d) the registration of a registered firm may be revoked
or cancelled by order of the competent authority whenever thecompetent authority is of the opinion that there are material
circumstances concerning the registered firm that, if the
registered firm had not been registered, would disqualify it fr om
being registered.
(3) Where an authorisation or reg istration is suspended for a ti me
or subjected to conditions, the suspension or the conditions ma y be
lifted by the competent authority at any time.
(4) Where an authorisation is withdrawn in terms of sub-article
(2)(a), or where a registration is cancelled under sub-article (2)(b), a
new authorisation may be issued, or a new registration may be m ade,
at any time if the conditions for such issue or registration ar e satisfied. 
(5) Upon the revocation or withdraw al of an authorisation issued
under this Act, or during such p eriod when the authorisation is
VERŻJONI ELETTRONIKA
A 700
suspended, the person to whom the authorisation was issued shal l not
be authorised to carry out the functions of an insolvency pract itioner in
terms of article 4(2), and upon th e cancellation of any registr ation of a
registered firm, or for such period when such registration is suspended,
the firm shall cease to be registered.
PART V 
Appeal
Appeals. 20. (1) There shall lie a right of appeal to the Tribunal on any
decisions made by the competent a uthority as listed in article 21(1),
which right shall be competent  to any person aggrieved by the
decision:
Provided that in any case, a per son making an appeal to the
Tribunal shall also explain his juridical interest in impugning  the
decision appealed from. 
Cap. 490. (2) Unless otherwise provided by the Administrative Justice Act
or any regulations made thereunder, an appeal from the decision s or
orders referred to in article 21(1) shall be made by applicatio n and
shall be filed in the registry of the Tribunal within twenty (2 0) days
from the date of t he said decision.
Decisions of the 
competent authority that 
may be appealed 
from.21. (1) Unless otherwise provided by law, an appeal shall lie to
the Tribunal from the following de cisions or orders made under this
Act: 
(a) any decision of the competent authority pursuant to
the issue of an authorisation in terms of article 4; 
(b) any decision of the com petent authority to revoke,
withdraw, or suspend an aut horisation, or subject such
authorisation to other conditions in terms of article 19;
(c) any decision of the competent authority to refuse to
register a firm in terms of article 6;
(d) any decision of the com petent authority to revoke,
suspend, cancel or subject to other conditions the registration  of
a registered firm in terms of article 19;
(e) any decision of the competent authority which
acquits or is decided against an insolvency practitioner or
registered firm in cases of professional misconduct, following an
investigation carried out by the competent authority;
(f) any decision of the compe tent authority pursuant to a
VERŻJONI ELETTRONIKA
A 701
measure taken to protect the public interest and the integrity of
the role of the insolvency pract itioner in terms of article 9(1 )(j); 
(g) any decision of the competent authority to impose
administrative penalties or re primands or other measures in
terms of this Act; 
(h) any decision taken in ter ms of any regulations or
directives issued under this Act , when the regulation or direct ive
explicitly grants a right of appeal in terms of this article; and
(i) any other decision of the c ompetent authority that the
appellant may reasonably demonstrate, to the satisfaction of th e
Tribunal, to have materially and unfairly aggrieved the appella nt.
(2) The decision of the compe tent authority shall not be
suspended pending appeal, and shall, in the interim, be adhered  to by
all the parties to whom the decision applies. 
(3) The Tribunal, where it considers it to be appropriate, may o n
the application of a party to th e appeal, suspend the decision of the
competent authority, pending the final determination of the app eal.
The Tribunal, in deciding to suspend the decision, shall state itsreasons for doing so.
General 
provisions 
relating to 
offences.22. (1) The provisions of this Act  establishing offences and
punishments in respect thereof s hall not affect the operation o f any
other law establishing offences and punishments in respect of t he same
acts or omissions and shall not, in particular, affect the application of
any higher punishments under any other law. 
Cap. 9.(2) Any actions taken by the competent authority with respect to
professional misconduct or other p roceedings pursuant to a viol ation
of the provisions of this Act or  of any regulations or directiv es made
under it, shall be without prejudice to any proceedings which m ay be
taken against the person concerned under the provisions of the
Criminal Code or of any other la w, and any proceedings so taken  shall
be without prejudice to any proceedings that may be taken by th e
competent authority.
PART VI
Discipline
Disclosure of 
measures and decisions.23. (1) The competent authority shall appropriately disclose to
the public all the measures taken and the administrative penalt ies
imposed on insolvency practitione rs or registered firms in term s of this
Act or the regulations or direc tives issued under it including the
appropriate disclosure of administrative pe nalties imposed. The
VERŻJONI ELETTRONIKA
A 702
disclosure required by this article may take place through a we bsite
maintained by the competent authority, or through the Registry
established in terms of article 10.
(2) Without prejudice to the generality of sub-article (1), the
competent authority shall notify, by registered mail, or by ele ctronic
mail any decision taken by it, from which there shall lie the r ight of
appeal in terms of article 21, to any person to whom such decis ion
applies:
Provided that, in the event that the person to whom such
decision applies cannot be reached or found, the person shall bedeemed to have been validly notified by leaving a copy of suchdecision at the office address, place of business, or place of work of
such person, or with a person in h is service, or with his attor ney or
person authorized to receive his mail, or through a notice publ ished
within a website maintained by the com petent authority.
Publication of 
administrative 
penalties and other measures.24. (1) The competent authority sh all publish on its website at
least any administrative penaltie s or other measures imposed fo r
breach of the provisions of this Act, or of the directives or r egulations
made under it, in respect of which all rights of appeal have be en
exhausted or have expired, as soon as reasonably practicable
immediately after the person concerned has been informed of tha t
decision, including information concerning the type and nature of the
breach and the identity of the person on whom the administrativ e
penalty or other measure has been imposed.
(2) The competent authority shall publish on its website the
administrative penalties or other measures imposed on an anonym ous
basis, and in a manner which is in conformity with Maltese law,  in any
of the following circumstances: 
(a) where, the administrative  penalty or other measure is
imposed on a natural person, the required publication of person al
data is shown to be disproportionate by an obligatory priorassessment of the proportionality of such publication;
(b) where publication would jeopardise the stability of
financial markets or an ongoing criminal investigation; or
(c) where publication would cause disproportionate
damage to the instituti ons or individuals involved. 
(3) The competent authority shall ensure that any publication in
accordance with sub-article (1) is of proportionate duration and that it
remains on its website for a minimum period of five (5) years a fter all
rights of appeal have been exhausted or have expired.
VERŻJONI ELETTRONIKA
A 703
Reporting of 
breaches.25. (1) The competent authority shall establish effective
mechanisms that encourage reportin g of breaches of this Act, or  of the
regulations or directives made under it.
 (2) The mechanisms referred to in sub-article (1) shall include  at
least:
(a) specific procedures for  the receipt of reports of
breaches and their follow-up;
Cap. 586.(b) protection of personal data concerning both the
person who reports the suspected or actual breach and the perso n
who is suspected of committing, or who has allegedly committed
that breach, in compliance with t he principles laid down in the
Data Protection Act and Regulation (EU) 2016/679 of the
European Parliament and of the Council of 27 April 2016 on the
protection of natural persons with regard to the processing ofpersonal data and on the free movement of such data, and
repealing Directive 95/46/EC  (General Data Protection
Regulation); and
(c) appropriate procedures to ensure the right of the
accused person to a defence and to be heard before the adoption
of a decision concerning him, and the right to seek an effectiv e
remedy before a tribunal against any decision or measureconcerning him. 
(3) Registered firms shall esta blish appropriate procedures for
their employees to report potentia l or actual breaches of this Act, or of
the regulations or directives  made under it t hrough a specific channel
or channels.
PART VII 
Data Collection
 Data collection. 26. (1) The competent authority shall be responsible to collect
and aggregate, on an annual basis, national data on proceduresconcerning:
Act No. XXIV 
of 2022(a) applications for preventiv e restructuring procedure in
terms of the Pre-Insolvency Act, 2022;
Cap. 13.(b) applications for the declaration of bankruptcy and a
discharge of debt in terms of Part III of the Commercial Code;
and
VERŻJONI ELETTRONIKA
A 704
Cap. 386.
Cap. 16.(c) applications for winding up due to insolvency, by
companies or commercial pa rtnerships in terms of the
Companies Act or by legal organisations in terms of the Civil
Code.
(2) The type of information that shall be collected by the
competent authority shall be sorted with respect to each proced ure
listed in sub-article (1), and shall include, but not be limited to:
 (a) the number of procedures that were applied for or
opened, and of procedures that are pending or were closed; 
(b) the average length of procedures from the submission
of the application for the comm encement of court proceedings,
or from the opening thereof, to their closure; 
Act No. XXIV 
of 2022(c) the number of applications for preventive
restructuring procedures in te rms of the Pre-Insolvency Act,
2022 that were declared inadmissible, were rejected or were
withdrawn before a preventive restructuring order was issued in
terms thereof; and
(d) the number of procedures  other than those required
under paragraph (c), sorted by the outcome of the respectiveprocedures.
(3) The competent authority shall sort any data that shall be
collected and aggregated in terms of sub-article (2)(a), (b) an d (d), by
reference to:
(a) the size of the debtors, not being natural persons;
Act No. XXIV 
of 2022
Cap. 386.
Cap. 16.(b) whether debtors subject to procedures concerning
preventive restructuring proceedings in terms of the Pre-
Insolvency Act, 2022, or insolvenc y proceedings in terms of the
Companies Act or the Civil Code as applicable, are natural or
legal persons; and 
Cap. 13.(c) whether the procedures lead ing to a discharge of debt
in terms of Part III of the Co mmercial Code concern only natura l
persons in the course of a trade, business, craft or profession, orall natural persons. 
VERŻJONI ELETTRONIKA
A 705
Act No. XXIV 
of 2022.
Act No. XXIV 
of 2022.(4) The competent authority shall also collect and aggregate, on
an annual basis, data on the num ber of debtors which were subje ct to
preventive restructuring proceedings in terms of the Pre-Insolv ency
Act, 2022, or insolvency proceed ings, and which, within the thr ee (3)
years prior to the submission of  the application or the opening  of such
proceedings, had a restructuring plan confirmed in terms of the  Pre-
Insolvency Act, 2022.
(5) Any data to be collected and aggregated in terms of this
article shall be compiled for full calendar years ending on 31
December of each year, starting with the first full calendar ye ar
following the date of applicati on of the implementing acts refe rred to
in Article 29(7) of Directive (EU) 2019/1023 of the European
Parliament and of the Council o f 20 June 2019 on preventive
restructuring frameworks, on discharge of debt and disqualifica tions,
and on measures to increase the efficiency of procedures concerningrestructuring, insolvency and discharge of debt, and amending
Directive (EU) 2017/1132 (Direc tive on restructu ring and insolv ency).
(6) The Minister may, acting on the recommendation of the
competent authority, make regulations as may be conducive to th e
fulfilment of the Article 29(7)  of Directive (EU) 2019/1023 of the
European Parliament and of the Council of 20 June 2019 on preve ntive
restructuring frameworks, on discharge of debt and disqualifica tions,
and on measures to increase the efficiency of procedures concerningrestructuring, insolvency and discharge of debt, and amending
Directive (EU) 2017/1132 (Direc tive on restructu ring and insolv ency).
(7) Every insolvency practitioner or registered firm shall be
required to maintain a record of the data set out  in terms of t his article,
in respect of their own functions , and the competent authority may, at
its own discretion, request the p rovision of such data from the
insolvency practitioner or registered firm by not less than fou rteen (14)
days
/g3from the date of such request. 
(8) Where the competent authority  makes a request to a relevant
person, body or authority to provide information that is materially
necessary for the fulfilment of  the competent authority’s data
collection functions in terms of this article, the relevant per son, body
or authority shall, to the extent  that is permiss ible, provide the
requested information to the co mpetent authority without undue delay.
(9) Any person who breaches the provisions of this article which
impose upon him an obligation to collect, aggregate, store, or sort data,or communicate that data to the c ompetent authority, shall be g uilty of
an offence and shall be liable on conviction for each offence, in respect
of the first offence to a fine (multa) not exceeding one thousa nd and
VERŻJONI ELETTRONIKA
A 706
two hundred euro (€1,200 ) and in respect of a second or subsequ ent
offence to a fine (multa) not exceeding six thousand euro (€6,0 00), and
in the case of a continuing offence to an additional fine (mult a) not
exceeding one hundred and twenty euro (€120) for each day durin g
which the offence continues.
PART VIII
Miscellaneous
Exclusion of 
liability.27. (1) The competent authority, when acting in any function
assigned to it under any provisi on of this Act, i ncluding the o fficers
and employees of the competent authority, and any body establis hed
by this Act and any me mber, officer or emp loyee of that body, a nd any
other person appointed to perform a function on the competent
authority’s behalf under this A ct, shall not be liable in damag es for
anything done or omitted to be don e in the discharge or purport ed
discharge of any such function or otherwise in the exercise of their
duties in terms of this Act, unl ess the act or omission is show n to have
been done or omitted to be done, as the case may be, through wi lful
misconduct. 
Cap. 319.(2) No decision of the competent authority taken in accordance
with this Act or any regulations  or directives made under it may be
suspended by use of the warrant of prohibitory injunction, exce pt to
the extent that such decision in fringes a fundamental human rig ht of
the applicant as protected by the Constitution of Malta or the European
Convention Act.
Notices. 28. A notice or other document to be given or served under this
Act, or any regulations or directives made under it, shall be d eemed to
have been duly given or served on a person if, and on:
(a) the day it has been delivered personally to such
person; 
(b) the day it has been left at the address furnished by
him to the competent authority, or to the person’s last known
address; 
(c) the following day after it has been sent to him by post
at any of the aforesaid addresses or by electronic mail; or
(d)  the day as prescribed in paragraphs (a), (b) and (c) to
or on a secretary, clerk, manager or their equivalent, or to an y
principal, with regards  to a registered firm:
Provided that a certificate issu ed by the competent authority
certifying that it has sent the notice or other document that s hall be
VERŻJONI ELETTRONIKA
A 707
given or served under this Act, or any regulations or directive s made
under it, on a particular date shall be proof of its content. 
PART IX 
Transitory Provisions
Transitory 
provisions.
Cap. 386.29. (1) Any person who, on the date of the coming into force of
this Act, is authorised to exerc ise the profession of an advoca te,
accountant or auditor, and has  been appointed as a provisional
administrator, liquidator, or a special controlle r within the m eaning of
the Companies Act, or has otherwise served as an expert or prac ticed
as a lawyer within the Civil Cour t (Commercial Section), or the  Civil
Court, First Hall in commercial law or shipping law related cas es
within the preceding five (5) year s from the coming into force of this
Act, or otherwise proves to the s atisfaction of the competent authority,
that he has adequate experienc e in pre-insolvency, corporate
restructuring, business  finance, or liquidation, may apply to t he
competent authority to receive a  provisional authorisation to c arry out
the functions of an insolvency practitioner in terms of article 4(2). 
(2) An applicant shall annex to the application any documentation
or information as the competent authority may deem relevant, an d
shall furnish any further inform ation as the competent authority may
subsequently request.
(3) The competent authority shall, if it is satisfied that the
applicant in terms of sub-articl e (1) has the necessary knowled ge,
competence, experience and resources as it may consider to be
appropriate to carry out the fun ctions of an insolvency practitioner,
issue to the applicant a provisional authorisation that shall e ntitle the
recipient to carry out the functions of an insolvency practitio ner in
terms of article 4(2), and, provi ded that the conditions in article 6
subsist, to act as the principal for a registered firm.
(4) Any person being provisionally authorised in terms of this
article shall be subject to th e full scope and application of t he
provisions of this Act, and the competent authority shall act i n his
respect as though he was an insolvency practitioner and otherwi se in
terms of this Act and any re gulations or dir ectives issued unde r it.
(5) Without prejudice to the pr ovisions of this article, all
provisional authorisations granted in terms of this article, ir respective
of the date of issuance thereof, shall expire within twenty fou r (24)
months from the date of coming into force of this Act.
VERŻJONI ELETTRONIKA
A 708
Passed by the House of Representatives at Sitting No. 70 of the  14th
December, 2022.
ANĠLU FARRUGIA
Speaker
RAYMOND SCICLUNA
Clerk of the House of Representatives
_________________________________________________________________________________________________________________________
Ippubblikat mid-Dipartiment tal-Informazzjoni (doi.gov.mt) — Valletta — Published by the Department of Information (doi.gov.mt) — Valletta
Mitbugħ fl-Istamperija tal-Gvern fuq karta FSC — Printed at the Government Printing Press on FSC certified paper
Prezz/Price
€2.43
VERŻJONI ELETTRONIKA