IBBI Amends Insolvency Professional CPE Rules
Table of Contents
The Insolvency and Bankruptcy Board of India (IBBI) is the statutory regulator responsible for registering, overseeing, and enforcing standards for Insolvency Professionals (IPs), Insolvency Professional Agencies (IPAs), and Information Utilities (IUs) under the Insolvency and Bankruptcy Code, 2016 (IBC). It ensures the integrity and efficiency of the insolvency process by settling the eligibility criteria, conducting examinations, and regulating professional conduct. IBBI Amends Insolvency Professional and Continuous Professional Education (CPE) is crucial for IPs to maintain their competence, stay updated with evolving market dynamics, and deliver high-quality services in complex insolvency and liquidation proceedings. The IBBI (Continuing Professional Education for Insolvency Professionals) Guidelines (Amendment), 2025, on August 14, 2025, mandate a 30 credit hours annually, with a phased increase in mandatory in-person learning from 40% in 2026, 50% in 2027, to 605 by 2028 onwards.
What is Continuous Professional Education for Insolvency Professionals?
CPE is a mandatory requirement for maintaining registration, ensuring they possess the necessary knowledge and skills to perform their duties effectively in the dynamic market environment and complex insolvency cases. It has the objective to systematically upgrade an IPs competencies, enabling them to retain relevant, provide value-added services, and deliver on their statutory obligations in resolution, liquidation, and bankruptcy processes. Further, it ensures that IPs stay updated with evolving laws and practices through structured learning activities, including workshops, publications, and seminars. Compliance is mandatory for all registered IPs, with non-compliance leading to suspension of registration or authorization.
Previous Framework of CPE Requirements
Before the amendment to the CPE Guidelines, the framework required IPs:
- To complete a minimum of 10 credit hours of CPE annually, in addition to a rolling requirement of 60 credit hours over every three calendar year period.
- Eligible activities included participation in seminars, workshops, training programs, online courses offered by the IBBI, IPAs, statutory professional institutes, universities or other IBBI-approved entities.
- Non-compliance for CPE requirements could result in the suspension of an IPs registration or denial of authorisation for assignments until the backing of credit hours was fulfilled.
Key Amendments by IBBI
- Revised CPE Hours Requirement: The IBBI introduced a mandatory in-person learning, increasing the minimum CPE requirement, and adding new ways to earn credits. The minimum CPE credit hours have been increased from 10 to 30 per calendar year, with no requirement in the year of registration.
- Online and Hybrid Learning: While virtual learning is permitted, a growing percentage of creditors must be earned through in-person programs, starting at 40% in 2026 and increasing to 60% by 2028, reducing the flexibility for purely online completion.
- Categorization of Programs: Different credit hours are assigned based on the mode of learning; in person programs organised by the IBBI or IPAs offer 3 hours for a half-day and 6 hours for a full day, while virtual programs offer 2 and 4 hours respectively, with lower credit hours for programs by other entities.
- Compliance Period & Reporting: The CPE requirement is now annual, with IPs required to complete 30 credit hours each calendar year, and the obligation applies even during registration suspension.
Read more : IBBI Guidelines for Insolvency Professional Education
Rationale Behind the Amendments
The rationale behind the CPE for IPs includes:
- The need to keep IPs updated with latest judicial developments.
- Aligning with global best practices.
- Making compliance more practical and accessible through structured learning requirements and the introduction of mandatory in=person sessions.
Impact of Amended Rules on Insolvency Professionals
- For existing IPs, the amended guidelines introduce a streamlined digital framework with consolidated forms and a standardized monthly reporting cycle, significantly easing compliance burdens and providing access to dedicated online platforms for filings.
- For aspiring IPs, the updated guidelines establish a structured learning roadmap requiring 3- annual credit hours of CPE, including a phased increase in mandatory in-person learning, ensuring a foundation of up-to-date knowledge and skills.
- For the insolvency ecosystem, these reforms collectively promote higher competence and efficiency in insolvency and liquidation processes by reducing delays, preventing excessive caseload concentration, and enhancing transparency and accountability.
Challenges in Implementation
- Implementing effective monitoring is challenged by a complex and evolving regulatory landscape, inadequate resources, and the difficulty of integrating monitoring into daily operations without causing disruption.
- Ensuring quality of online courses requires consistent criteria, effective tracking of learner data, and the use of technology like Learning Management Systems to maintain standards and engagement.
- There may be possible resistance to increased training hours, which can be mitigated through relevant, role-specific, and ongoing training initiatives.
Way Forward for IBBI Amends Insolvency Professional CPE Rules
- The future of CPE modules lies in adopting advances, case-study driven curricula that reflect real-world complexities in insolvency and forensic accounting.
- Integrating practical case studies enhances decision-making skills and prepares professionals for nuanced challenges in financial investigations and restructuring.
- Modernising CPE with artificial intelligence, blockchain, digital forensics, and global insolvency frameworks like UNCITRAL Model Law ensures relevance and competitiveness.
- Collaboration with law schools, industry bodies, and international institutions can standardize its best practices.
Conclusion
The amendment is a progressive step towards enhancing the quality, efficiency, transparency, and professionalism of IPs in India. It is a major shift from the previous three-year CPE cycle with an annual requirement, now requiring 30 CPE credit hours each calendar year, except in the year of their initial registration. Further, the changes reflect the growing importance of financial integrity and address financial misconduct during corporate resolution processes.
FAQs
Q1. What is the new CPE requirement for insolvency professionals?
According to the new CPE requirements, IPs must complete 30 CPE hours annually and must also complete training on topics like Prevention of Money Laundering Act and fraud detection, with the new rules applying from 2026.
Q2. Can CPE hours be completed online?
Yes, IPs can complete some of their CPE hours online, but a mandatory percentage must be completed in person, standing at 40% in 2026 and increasing to 60% from 2028 onwards.
Q3. What happens if an IP fails to meet the CPE requirements?
Failure to meet CPE requirements can result in disciplinary action, including the suspension or deactivation of registration or certification, and may lead to the withholding of professional privileges or referral to disciplinary bodies.
Q4. Why did IBBI amend the CPE rules?
The IBBI amended the CPE Rules to enhance the quality of training for IPs, with a focus on improving skills through increased in-person learning and the inclusion of critical topics like fraud detection and the Prevention of Money Laundering Act.
Q5. How will the amendment benefit the insolvency ecosystem?
This amendment will benefit the insolvency ecosystem by enhancing the competence and preparedness of IPs through increased mandatory training, a focus on in-person learning, and the inclusion of critical areas like fraud detention, thus, leading to more effective and reliable insolvency proceedings.
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