EACTP announces European exam-based training and accreditation system for turnaround professionals
PRESS RELEASE – October 5th 2020
The first European exam-based training and accreditation system for turnaround professionals has been established, coinciding with legislation making academic qualifications increasingly relevant for people working in key roles in pre-insolvency restructuring cases in some of Europe’s biggest economies.
Leiden University in The Netherlands has confirmed that it will act as faculty for the new examinations being introduced by the European Association of Certified Turnaround Professionals (EACTP). Online study material will be available before the end of 2020, with exams starting in first quarter 2021.
05 October, 2020
EACTP was created in 2013 to establish a European-wide accreditation programme for turnaround professionals. Its certification scheme is based on the Turnaround Management Association (TMA) Global Certified Turnaround Professional (CTP) programme.
An industry standard ‘kitemark’ of quality, the accreditation programme is open to all professionals involved in turnaround management and now offers levels of membership to cater for turnaround managers at all stages of their career.
Since 2013, EACTP accreditation has been based on a rigorous case submission and references process. But success in the examinations process, carefully developed over a number of years and closely adhering to CTP global standards, will now be essential for EACTP accreditation.
Under the new system, aspiring young professionals will become Certified Turnaround Analysts (CTAs) on examination success, and with a further four years’ experience and the submission of cases and references, they can progress to Certified Turnaround Professional (CTP) status. Experienced professionals can qualify immediately to CTP level, but only after having achieved examination success.
The introduction of exams is particularly timely as new legislation in the United Kingdom and soon to be in Germany makes demonstrated exam based expertise and professional certification pertinent for professionals working in pre-insolvency company rescue where moratoriums will require qualified supervisors. There is a vacuum to be filled and EACTP now fills that space.
Germany is set to introduce new restructuring laws in early 2021 that will require professionals overseeing a statutory pre-insolvency rescue process to show that they have relevant and sufﬁcient experience and expertise.
Similar requirements exist in the UK following the introduction of the Corporate Insolvency and Governance Act in the summer of 2020. Currently this monitoring role requires a licensed insolvency practitioner which does raise issues of possible conflict of interest. EACTP certification with its examination credentials offers another more relevant expertise that EACTP hope will be recognised by legislation amendments.
EACTP’s President, Alan Tilley, a founding principal of leading turnaround management firm BM&T, said: “Education and examination success has always been the bedrock of any credible professional organisation. This is an important step towards Turnaround Management becoming a recognised profession in corporate rescue”.
“But the education and certification of our aspiring young turnaround professionals is assuming even greater importance as European restructuring legislation moves further towards pre-insolvency rescue”.
“There is an increasing need for the recognition of the role of qualified supervisors and monitors acting for the company and all stakeholders’ interests to avoid value-damaging insolvency”.
“EACTP provides that education and certification of professional competence.”
Under the new examination programme, candidates will be tested in the three disciplines of turnaround management: Stakeholder and Operational Management; Accounting and Finance; and Legal Principles in six main European jurisdictions, EU Regulation and aspects of the US Bankruptcy Code.
The examinations system and academic standards will be overseen by Jan Adriaanse, Professor of Turnaround Management at Leiden Law School.
Prof Adriaanse said: “I am very happy that Leiden University and EACTP are teaming up in the field of education of young European turnaround professionals. It is an important step for both the practical and academic field of turnaround management. Together we can shape the future of turnaround management in Europe. Especially in dire times, the need for education and standards is necessary. This will be a fruitful cooperation.”
For further information visit www.eactp.eu
Contact: Alan Tilley + 44 7950 808777