Malta Publishes Ethics Code for Insolvency Practitioners

Malta has introduced a comprehensive Code of Ethics and Professional Conduct for Insolvency Practitioners, establishing clear standards for professionals handling business failures and debt recovery.

The Malta Business Registry's (MBR) Insolvency and Receivership Service published the code this week, setting uniform conduct requirements designed to protect the reputation of insolvency practitioners and the interests of both creditors and debtors.

The framework applies to all authorised insolvency practitioners, requiring them to maintain high ethical standards whilst avoiding abusive or negligent behaviour. The code emphasises transparency, accountability, and proper performance in all insolvency proceedings.

Economy Minister Silvio Schembri highlighted the code's importance for Malta's business environment. "We are ensuring that insolvency proceedings are not only effective but fully open and accountable," he said. "Malta is a serious jurisdiction where the rules are clear, protecting the interests of everyone involved and reinforcing confidence in our business framework."

Dr Ingrid Hamilton, Official Receiver and Head of the Insolvency and Receivership Service, described the publication as "an important step in strengthening the integrity, transparency and professionalism of the insolvency framework in Malta."

The code establishes practitioners' duties and obligations, ensuring services are delivered competently and independently whilst serving creditors' and debtors' interests fairly.

The initiative coincides with the MBR's accreditation course for insolvency practitioners, now in its second term. Dr Geraldine Spiteri Lucas, MBR's Registrar and Chief Executive Officer, noted the course provides "in-depth legal knowledge, practical training and formal accreditation under the new legislative regime.”

The Code of Ethics and Professional Conduct for Insolvency Practitioners can be downloaded here.