Turnaround Professional Designations

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Turnaround Professional Qualifications
Jan van der Walt (CEO TMA-SA) August 2009
The premier professional community dedicated to
corporate renewal and turnaround management
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TMA-SA Presentations on Turnaround Certification

• 1. The turnaround industry in South Africa and
  the need for certification
• Turnaround professional body
• Turnaround professional body governance
  structures
• 4. Turnaround professional qualifications

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Turnaround Professional Qualifications

• Introduction
• Turnaround professional qualifications
• Certified Turnaround Professional and HCTP
• Associate Turnaround Professional
• Turnaround Professional Candidate
• Role of Services SETA

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Introduction
INTRODUCTION

• The Certified Turnaround Professional (CTP)
  qualification, introduced in the USA in 1993 and
  in Japan in 2005, and which is being planned in
  Australia, is earmarked for introduction in South
  Africa in 2010
• The Certified Turnaround Professional (CTP)
  qualification is an objective measure of the
  experience, knowledge, and integrity that is
  necessary to conduct corporate renewal work
• Criteria used for determining further
  qualifications
• Certified Turnaround Professional (CTP)
  qualification of the licensor as the cornerstone
• A second tier Associate Turnaround Professional
  (ATP) to allow for all professionals active or
  interested in the turnaround industry to earn a
  qualification, thereby opening turnaround to a
  wider section of the population
• The above two qualifications to have the
  Designate version for those that have passed
  exams but who dont have the required experience
  yet
• Temporary Turnaround Practitioner Candidate
  (TP-C) designatins to allow for a sufficiently
  large number of business rescue practitioners to
  enable implementation of Chapter 6 by 1 July 201
• Impact of regulation/no regulation of Business
  Rescue Practitioners

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Turnaround Professional Qualifications

• Introduction
• Turnaround professional qualifications
• Certified Turnaround Professional and HCTP
• Associate Turnaround Professional
• Turnaround Professional Candidate
• Role of Services SETA

6
PROFESSIONAL DESIGNATIONS
Certification Flow Diagram for the First Two
Years Following the First CTP Exams
H-CTP
Meeting H-CTP eligibility criteria
First CTP exams expected late 2010 or early 2011
CTP exams
Attendance course in directorship
CTP
Meeting CTP-D eligibility criteria
Meeting CTP experience requirements
Application
Meeting neither CTP nor BRP experience
requirements
CTP-D
Meeting CTP experience requirements
Meeting CTP-D or BRP eligibility criteria
Meeting BRP experience requirements
This route falls away 2 years after the first CTP
exams
Meeting BRP experience requirements
CTP exams

• Attendance courses
• Directorship
• Optional
• Chapter 6
• Turnaround management
• Finance/accounting

CTP-DBR
TP-C2
Meeting CTP experience requirements
Meeting CTP experience requirements
CTP exams
TP-C1
Key
CTP, H-CTP, TP-C12, CTP-DBR
Qualified to be admitted as business rescue
practitioners
Temporary designations valid only for 2 years
following the first CTP exams
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PROFESSIONAL DESIGNATIONS
Certification Flow Diagram After the First Two
Years Following the First CTP Exams
H-CTP
Meeting H-CTP eligibility criteria
First CTP exams expected late 2010 or early 2011
CTP exams
Attendance course in directorship
CTP
Meeting CTP-D eligibility criteria
Meeting CTP experience requirements
Application
Meeting neither CTP nor BRP experience
requirements
CTP-D
Meeting CTP experience requirements
Meeting BRP experience requirements
CTP-DBR
Meeting CTP experience requirements
Key
CTP, H-CTP, CTP-DBR
Qualified to be admitted as business rescue
practitioners
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Summary of professional qualifications if
business rescue practitioners are regulated
PROFESSIONAL DESIGNATIONS
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Turnaround Professional Qualifications

• Introduction
• Turnaround professional qualifications
• Certified Turnaround Professional and HCTP
• Associate Turnaround Professional
• Turnaround Professional Candidate
• Role of Services SETA

10
Minimum requirements for a Certified Turnaround
Professional - Designate (CTP-D)
CERTIFIED TURNAROUND PROFESSIONAL AND HCTP

• A bachelors degree from an accredited university
  or at least ten (10) years of experience in
  executive or senior management, interim
  management, consulting, loan workout/restructuring
  , or in the legal or accounting professions or as
  a business rescue practitioner
• Payment of all required fees
• Successfully completed the written CTP
  examinations in management, law and
  finance/accounting prepared and graded by the
  Academic Subcommittee
• Attended an approved course in directorship
• Agree to support and adhere to the Code of Ethics
  of the Turnaround Management Association
• Provide recommendations from three professional
  peers of the candidate
• Reveal any pending disciplinary action or prior
  public discipline, any criminal conviction, any
  malpractice judgment or admission of malpractice
  and any refusal, denial or revocation of a
  license to practice or certification by another
  professional body
• After certification, complete at least 50 hours
  of continuing professional education during each
  two-year period, including two hours of ethics
  credit

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Minimum requirements for a Certified Turnaround
Professional - Designate (CTP-D) - continued
CERTIFIED TURNAROUND PROFESSIONAL AND HCTP

• Comment
• This qualification does not qualify the holder to
  be a business rescue practitioner should the
  latter be regulated

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Minimum requirements for a Certified Turnaround
Professional Designate (Business Rescue)
(CTP-D(BR))
CERTIFIED TURNAROUND PROFESSIONAL AND HCTP

• As for a CTP-D, plus
• A minimum of five (3) years of experience
  executive or senior management, interim
  management, consulting, loan workout/restructuring
  , or in the legal or accounting professions, or
  as a liquidator
• Comment
• This qualification is for Turnaround Professional
  Candidates Class 2 (TP-C2s) that have passed the
  required CTP exams, and qualifies the holder to
  be a business rescue practitioner should the
  latter be regulated

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Minimum requirements for a Certified Turnaround
Professional (CTP)
CERTIFIED TURNAROUND PROFESSIONAL AND HCTP

• As for a CTP-D, plus
• A minimum of five (5) years of experience in
  executive or senior management, interim
  management, consulting, loan workout/restructuring
  , or in the legal or accounting professions or as
  a business rescue practitioner, three (3) years
  of which must be in turnaround, two (2) years of
  which must be with regard to companies suffering
  financial distress or in a financial crisis
• Submit letters from at least three (3) clients
  confirming the turnaround nature of the
  assignments undertaken
• Clients will not be asked to evaluate the
  candidates performance
• Submit five (5) case studies confirming the
  turnaround nature of the assignments undertaken
• Payment of all required fees
• Comment
• This qualification qualifies the holder to be a
  business rescue practitioner should the latter be
  regulated

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Minimum requirements for an Honourary Certified
Turnaround Professional (HCTP)
CERTIFIED TURNAROUND PROFESSIONAL AND HCTP

• Honourary Certified Turnaround Professional
  (HCTP) as for CTP except
• No exams, but a lifelong contribution to the
  turnaround industry is required
• By invitation of the Certification Governance
  Board only, and invitations will be extended
  every 5 years only
• Comment
• This qualification qualifies the holder to be a
  business rescue practitioner should the latter be
  regulated

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Turnaround Professional Qualifications

• Introduction
• Turnaround professional qualifications
• Certified Turnaround Professional and HCTP
• Associate Turnaround Professional
• Turnaround Professional Candidate
• Role of Services SETA

16
Minimum requirements for an Associate Turnaround
Professional - Designate (ATP-D)
ASSOCIATE TURNAROUND PROFESSIONAL

• A bachelors degree from an accredited university
  or a diploma from an university of technology or
  at least five (5) years (instead of 10 years
  required for a CTP) of experience in executive or
  senior management, interim management,
  consulting, loan workout/restructuring, or in the
  legal or accounting professions or as a business
  rescue practitioner
• Payment of all required fees
• Successfully completed the written ATP
  examinations in management, law and
  finance/accounting prepared and graded by the
  Academic Subcommittee
• Agree to support and adhere to the Code of Ethics
  of the Turnaround Management Association
• Provide recommendations from three professional
  peers of the candidate
• Reveal any pending disciplinary action or prior
  public discipline, any criminal conviction, any
  malpractice judgment or admission of malpractice
  and any refusal, denial or revocation of a
  license to practice or certification by another
  professional body
• After certification, complete at least 50 hours
  of continuing professional education during each
  two-year period, including two hours of ethics
  credit

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Minimum requirements for an Associate Turnaround
Professional - Designate (ATP-D) - continued
ASSOCIATE TURNAROUND PROFESSIONAL

• Comment
• This qualification does not qualify the holder to
  be a business rescue practitioner should the
  latter be regulated

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Minimum requirements for an Associate Turnaround
Professional (ATP)
ASSOCIATE TURNAROUND PROFESSIONAL

• As for a ATP-D, plus
• A minimum of three (3) years of experience in
  executive or senior management, interim
  management, consulting, loan workout/restructuring
  , or in the legal or accounting professions or as
  a business rescue practitioner, one (1) year of
  which must be in turnaround (no requirement of
  companies suffering financial distress or in a
  financial crisis)
• Submit letters from at least two (2) (instead of
  three required for a CTP) clients confirming the
  turnaround nature of the assignments undertaken
• Clients will not be asked to evaluate the
  candidates performance
• Submit two (2) (instead of five required for a
  CTP) case studies confirming the turnaround
  nature of the assignments undertaken
• Comment
• This qualification does not qualify the holder to
  be a business rescue practitioner should the
  latter be regulated

19
Turnaround Professional Qualifications

• Introduction
• Turnaround professional qualifications
• Certified Turnaround Professional and HCTP
• Associate Turnaround Professional
• Turnaround Professional Candidate
• Role of Services SETA

20
Minimum requirements for a Turnaround
Professional Candidate (TP-C) (valid only for the
first two years after promulgation of the
Companies Act)
TURNAROUND PROFESSIONAL CANDIDATE

• Turnaround Professional Candidate Class 1
  (TP-C1)
• A bachelors degree from an accredited university
  or at least ten (10) years of experience in
  executive or senior management, interim
  management, consulting, loan workout/restructuring
  , or in the legal or accounting professions
• A minimum of five (5) years of experience in
  executive or senior management, interim
  management, consulting, loan workout/restructuring
  , or in the legal or accounting professions,
  three (3) years of which must be in turnaround,
  two (2) years of which must be with regard to
  companies suffering financial distress or in a
  financial crisis
• Submit letters from at least three (3) clients
  confirming the turnaround nature of the
  assignments undertaken (clients will not be asked
  to evaluate the candidates performance)
• Submit five (5) case studies confirming the
  turnaround nature of the assignments undertaken
• Turnaround Professional Candidate Class 2
  (TP-C2)
• A bachelors degree from an accredited university
  or at least five (5) years of experience in
  executive or senior management, interim
  management, consulting, loan workout/restructuring
  , or in the legal or accounting professions, or
  as a liquidator and
• A minimum of three (3) years of experience as
  listed above

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Minimum requirements for a Turnaround
Professional Candidate (TP-C) - continued
TURNAROUND PROFESSIONAL CANDIDATE

• Further minimum requirements
• Attended a course, approved by the Standards
  Subcommittee, in directorship, Chapter 6 business
  rescue, turnaround management (can be waived),
  and finance/accounting (can be waived)
• Payment of all required fees
• Agree to support and adhere to the Code of Ethics
  of the Turnaround Management Association
• Provide recommendations from three professional
  peers of the candidate
• Reveal any pending disciplinary action or prior
  public discipline, any criminal conviction, any
  malpractice judgment or admission of malpractice
  and any refusal, denial or revocation of a
  license to practice or certification by another
  professional body
• After certification, complete at least 50 hours
  of continuing professional education during each
  two-year period, including two hours of ethics
  credit

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Validity and conversion of Turnaround
Professional Candidate qualifications during and
after the first two years after promulgation of
the Companies Act)
TURNAROUND PROFESSIONAL CANDIDATE

• The TP-C1 and TP-C2 qualifications are valid only
  during the first two years of the promulgation of
  the Companies Act to allow a sufficiently large
  number of business rescue practitioners to be
  admitted should practitioners be regulated
• During this period only this qualification
  qualifies the holder to be a business rescue
  practitioner should the latter be regulated
• During this period, a holder of the TP-C2
  qualification may switch to theTP-C1
  qualification if the minimum requirements to
  become a TP-C1 are met
• After 2 years have passed since promulgation of
  the Companies Act
• By successfully completing the written CTP
  examinations in management, law and
  finance/accounting prepared and graded by the
  Academic Subcommittee
• A holder of the TP-C1 qualification will become a
  holder of the CTP qualification
• A holder of the TP-C2 qualification will become a
  holder of the CTP-D(BR) qualification

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Turnaround Professional Qualifications

• Introduction
• Turnaround professional qualifications
• Certified Turnaround Professional and HCTP
• Associate Turnaround Professional
• Turnaround Professional Candidate
• Role of Services SETA

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Role of Services SETA
ROLE OF SERVICES SETA

• Development of professional qualifications
• Assistance with approval of professional
  qualifications by SAQA
• Assistance with having the Turnaround
  Certification Governance Board recognised by
  government as the regulatory authority of
  business rescue practitioners (see Turnaround
  Professional Body presentation)

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Questions?

• Register as a member
• www.tma-sa.com/members/tma registration.asp
• Contact details for Susanne Braatvedt
  (Administrator)
• Tel. [phone]
• Fax [phone]
• Web site www.tma-sa.com
• Email admin_at_tma-sa.com

Turnaround Management Association Southern
Africa CEO Jan van der Walt