10.PPS Managing Engagements
The purpose of the Professional Practice Statements (PPSs) is to ensure Affiliates of the Affiliation for Business Resilience & Turnaround (ABRT), and all those who work for, represent or act on their behalf, maintain high professional standards at all times.
The PPSs set out guidance and suggested standards of practice for those engaged in the restructuring and turnaround of a business, and in the resolution of financial distress affecting a business or its stakeholders. They are intended to promote best-practice conduct that is aligned with prevailing statute, ethical frameworks and other relevant professional guidelines.
The PPSs describe required practice as a professional benchmark but are not statutory or legislative statements. They are not intended to prescribe a single mandatory approach or to operate as rigid rules. Affiliates are expected to exercise professional judgment, having regard to the specific circumstances, complexity and risk profile of each matter.
1 Introduction
1.1
Affiliation with the ABRT carries an expectation that Affiliates recognise and adhere to the professional practice standards of the organisation when managing client engagements.
1.2
Affiliates are expected to ensure that engagements are managed, controlled and administered in accordance with agreed engagement terms and professional standards at all times.
1.3
Engagement complexity may increase where an Affiliate works as part of a broader turnaround or restructuring team involving multiple advisers, specialists or stakeholders, whose combined input informs board decision-making.
1.4
In such circumstances, Affiliates should give careful consideration to planning, delegation and oversight arrangements to ensure engagements remain properly managed, within scope and aligned with the interests of the client and affected parties.
2 Delegation of Work
2.1
Delegation involves authorising another person or entity to perform specified tasks or functions on behalf of the Affiliate, while responsibility for overall engagement management remains with the Affiliate unless expressly agreed otherwise.
2.2
Turnaround and restructuring engagements vary significantly in size, complexity and duration. Affiliates operate within practices of differing scale and resourcing, which may necessitate varying degrees of delegation.
2.3
Delegation may include, without limitation:
- allocation of tasks to employees or contractors, including those working remotely or in different jurisdictions
- participation in joint engagements with other Affiliates or advisers, with defined responsibility sharing
- agreement with the client that another suitably qualified professional will take responsibility for specific aspects of the engagement
- engagement of specialist advisers, whether internal or external, where additional expertise is required
- implementation of succession arrangements consistent with PPS.8
2.4
Where delegation occurs, the Affiliate should remain satisfied that work is being performed competently, efficiently and in a manner consistent with the engagement scope and client expectations.
3 Engagement Management and Oversight
3.1
In determining appropriate management and control arrangements for an engagement, Affiliates should consider:
- the size, structure and capabilities of their practice
- the qualifications, experience and supervision requirements of employees or contractors
- the need for the Affiliate to set and communicate overall engagement strategy
- consultation processes where engagements are undertaken jointly
- clarity of roles, responsibilities and decision-making authority
- approval thresholds and escalation points
- procedures for managing engagements conducted remotely
- systems for monitoring progress, compliance and deliverables
- frequency and structure of case reviews
- communication and correspondence management processes
- cost tracking, scope control and objective measurement
- selection, instruction and monitoring of external specialists
3.2
Affiliates should be mindful that engagement management decisions may later be scrutinised by clients, regulators, courts or other stakeholders. The ability to demonstrate appropriate oversight, control and professional judgement is therefore important.
4 Documentation and Record Keeping
4.1
Affiliates are expected to maintain contemporaneous working papers, file notes and client case records for all engagements, consistent with PPS.3.
4.2
Depending on the nature and complexity of the engagement, Affiliates may consider documenting engagement-specific management procedures and confirming these in writing with the client.
4.3
Proper documentation supports continuity, accountability and defensibility, particularly where work is delegated or undertaken collaboratively.
5 Interaction with Other PPSs
5.1
This PPS should be read in conjunction with:
- PPS.3 – Client Case Records
- PPS.7 – Informal Creditor Workouts and Negotiation
- PPS.8 – Succession Planning
- PPS.9 – Dealing with Complaints
5.2
Together, these PPSs establish a coherent framework for engagement governance, delegation, continuity and accountability.
