ASIC today released a consultation paper covering proposals to reissue its guidance in Regulatory Guide 186 External administration: Liquidator registration (RG 186) and Regulatory Guide 194 Insurance requirements for registered liquidators (RG 194), reflecting changes to the law enacted by the Insolvency Law Reform Act 2016.
Consultation Paper 276 Registered liquidators: Registration, discipline and insurance requirements (CP 276) sets out the proposals. A draft of the proposed regulatory guide is attached to CP 276.
ASIC has welcomed the insolvency law reforms, which harmonise the regulatory framework for personal and corporate insolvency and implement proposals arising from an earlier government inquiry into the insolvency industry and ASIC's role in regulating it.
ASIC also looks forward to submissions on CP 276, which must be lodged with ASIC by 9 February 2017.
Background
Parliament passed the Insolvency Law Reform Act 2016 (ILRA) on 22 February 2016, receiving royal assent on 29 February 2016.
The ILRA implements reforms, outlined in the former Commonwealth Government's Proposals Paper, A modernisation and harmonisation of the regulatory framework applying to insolvency practitioners in Australia, reflecting the main themes of harmonisation and alignment of the Bankruptcy Act 1966 and the Corporations Act 2001. The reforms aim to increase efficiency, reduce costs of administration and promote market competition.
The ILRA provisions relating to registration and discipline of registered liquidators commence on 1 March 2017 with the balance of the ILRA provisions commencing on 1 September 2017.