EACTP delivers transparency in turnaround
Leading European turnaround experts have highlighted the need for professional independence and transparency when dealing with distressed businesses, in the wake of the Tomlinson Report.
Senior representatives from the European Association of Certified Turnaround Professionals (EACTP) have spoken out after the report revealed the banking industry’s conflict between commercial pressures, and duty of care to customers when handling businesses in difficulty.
Given the culture and internal pressures a bank profit centre will inevitably be conflicted in rehabilitating distressed businesses and assets. This is not good for the banking industry nor the turnaround and restructuring profession.
Alan Tilley, Executive Director of the EACTP
Alan Tilley, Executive Director of the EACTP, says the report reinforces the necessity of transparency in turnaround management.
He said: “Given the culture and internal pressures a bank profit centre will inevitably be conflicted in rehabilitating distressed businesses and assets. This is not good for the banking industry nor the turnaround and restructuring profession.
“Turnaround professionals also face competing interests, between the commercial pressures to find assignments and the professional independence in undertaking them. Who do they work for? The debtor who pays the bill or the creditor at risk?
“We believe turnaround and restructuring practitioners have a wider duty of care than to vested secured creditor interest. When client mandates depend on approbation from vested interests their independence can be questioned. Recognition of practitioners as members of an independent professional body adds credibility to their status.”
The EACTP is striving to further the standing of turnaround and restructuring practitioners within an independent professional association dedicated to preserving enterprise value for the benefit of all stakeholders. The organisation provides a respected and recognised certification scheme based on the Turnaround Management Association (TMA) Global Certified Turnaround Professional (CTP) programme.
Tyrone Courtman, President of the EACTP, said: “Achieving and demonstrating the standards required to become a CTP is recognition of the highest level of professional competence and the adherence to a code of professional ethics.
“It equips the professional with cross-professional knowledge, management, law and finance and to act with independence and integrity to approach assignments with an appropriate balance of stakeholder interests in business distress in the zone of insolvency.
“Achieving recognition through an independent body to globally recognised standards gives practitioners an edge and the status to better manage their own commercial and professional conflicts.”
The EACTP is currently allowing senior professionals with a strong turnaround record to be certified on the basis of their experience without examination qualification. Applicants need to demonstrate technical expertise and practical experience in turnaround, by providing case studies and references in which they had substantial and significant influence in the turnaround and restructuring of underperforming and distressed business in Europe.
During 2014 the organisation will introduce its education platform and from 2015 all applicants will be required to show examination success in the three cornerstone disciplines of relevant law, management and finance.
Notes to editors:
Interviews with Alan Tilley are available – please call Victoria Clark 07980 931857 to arrange an interview or for any other media queries.
The European Association of Certified Turnaround Professionals (EACTP) is an independent organisation set up to establish the first European-wide accreditation programme for all turnaround professionals across the continent. The pioneering body aims to promote high standards in turnaround by providing a respected and recognised pan-European professional qualification.