New Member Body for the Channel Islands
INSOL World Q1 2014
By Timothy Le Cornu
Chair, Association of Restructuring and Insolvency Experts (“ARIES”)
KRyS Global, Guernsey
The Association of Restructuring and Insolvency Experts (“ARIES”) was formed in the Channel Islands in September 2013 as a professional body for those practising, or interested in, restructuring and insolvency. ARIES membership of INSOL International was ratified by the Board in October.
ARIES celebrated its’ launch with social and networking events in both Guernsey and Jersey on 25 and 26 September. We were fortunate to have INSOL’s President, Jamie Sprayregen attend the launch event in Guernsey. Jamie provided an overview of some of the initiatives and behind the scenes work done by INSOL as well as highlighting the vast array of technical and support material available to members, the wide range of conferences and seminars available and an introduction to the Global Insolvency Practice Course.Jamie’s presence demonstrated to members the support we have received from INSOL in getting the Association off the ground.
The Channel Islands are situated in the English Channel, close to the French coast, and are made up of two separate jurisdictions, the Bailiwick of Jersey (comprising the island of Jersey) and the Bailiwick of Guernsey (comprising the islands of Guernsey, Alderney, Sark and various smaller islets). Both are Crown Dependencies with self-governing parliamentary democracies. Jersey and Guernsey are recognised as major offshore financial centre’s which compete for some service offerings, but also have their own strengths. One unique challenge in forming an association of restructuring professionals for the Channel Islands included the individualism of each island and the different statutes applying in each. For example, whilst Guernsey has an Administration regime, introduced in 2008, there is no equivalent “rescue remedy” in Jersey. Nonetheless, there was a strong feeling amongst professionals in each island that a combined association would provide the greatest opportunities for developing and enhancing the practice of insolvency in the Channel Islands.
Professionals in the practice of insolvency in the Channel Islands were limited in number until the onset of the Global Financial crisis, which brought about the steady increase in professionals engaged in this area. In excess of 120 attended the launch events across the islands and many others were unable to attend, which demonstrates the critical mass of professionals now practicing or having an interest in insolvency.
ARIES has already established links with the Courts and policy makers in each jurisdiction with a view to playing a key part in future developments in the law. Guernsey commenced a consultation process with key practitioners in February to look at how the law might develop in future and the type of changes that may be considered in a review of the law. A similar approach has been made in Jersey and we hope to be able to provide some guidance and direction in the development of the law in both islands from a very practical perspective.
On 6 November Jersey hosted the first technical update in the form of a debate on the merits (or otherwise) of amending the law relating to corporate rescue and keeping businesses and employees together as a going concern. The debate was held in conjunction with Jersey’s Institute of Law, was well attended and prompted a lively discussion between the panel and audience at the conclusion of the debate.
We are also delighted that INSOL International has committed to hosting a one day Channel Islands seminar on 12 June 2014. At the time of writing the details have yet to be confirmed, but anyone with an interest in the Channel Islands should keep an eye open for announcements from INSOL.