What is the AA Fund

The AA Fund funds preliminary investigations and reports by liquidators into the failure of companies with few or no assets, where it appears to us that enforcement action may result from the investigation and report. A particular focus of the AA Fund is to curb fraudulent phoenix activity.

The AA Fund enables a liquidator to carry out a proper investigation and report, which then helps us decide whether to commence enforcement action. It also funds a liquidator to take action to recover assets when fraudulent or illegal activity is suspected.

Additionally, the AA Fund:

• funds a liquidator appointed by ASIC to an abandoned company under Pt 5.4C of the Corporations Act 2001 (Corporations Act), and
• funds a reviewing liquidator appointed by ASIC under section 90-23 of Schedule 2 to the Corporations Act to review a matter that relates to the external administration of a company.

Grant guidelines for registered liquidators

The guidance relating to each of the three types of grant opportunity (previously outlined in the now withdrawn RG 109 Assetless Administration Fund: Funding criteria and guidelines) for funding from the Assetless Administration Fund (AA Fund) is published on the Australian Government’s grant information system, GrantConnect, in accordance with the Department of Finance’s requirements.

Details of how to make an application through ASIC’s Regulatory Portal are found at Request for assetless administration funding.

To access the grant guidelines and annexures, including template grant agreement (grant documents) for each grant opportunity, you need to register as a user on GrantConnect. Once registered, you can search, view and download reports for grant opportunities and grant awards allocated from the AA Fund.

If you have any questions about how to use the site once logged in, visit the ‘Help’ and ‘Contact Us’ pages. For your convenience we have downloaded the grant documents for each grant opportunity. To ensure you access the current versions you may also want to access them from GrantConnect.

Grant documents

Director Banning

• Director Banning Grant Guidelines (PDF 563 KB)
• Annexure A to Grant Guidelines: Allegations of possible misconduct – Substantiation guide (PDF 495 KB)
• Annexure B – Director Banning Grant Agreement (PDF 519 KB)

Matters other than Director Banning

• Matters other than Director Banning Grant Guidelines (PDF 569 KB)
• Annexure A to Grant Guidelines: Allegations of possible misconduct – Substantiation guide (PDF 495 KB)
• Annexure B – Matters other than Director Banning Agreement (PDF 515 KB)

Asset Recovery

• Asset Recovery Grant Guidelines (PDF 492 KB)
• Annexure A – Asset Recovery Grant Agreement (PDF 718 KB)

GrantConnect links

• GrantConnect GO4192 Director Banning grant opportunity
• GrantConnect GO4193 Matters other than Director Banning grant opportunity
• GrantConnect GO4195 Asset Recovery grant opportunity

Grant reporting

The accountable authority of ASIC has assured that in accordance with the Commonwealth Grants Rules and Guidelines 2017 all reportable grants from 31 December 2017 are provided in GrantConnect. You need to register as a user on GrantConnect. Once registered, you can search, view and download reports for grant opportunities and grant awards allocated from the AA Fund. If you have any questions about how to use the site once logged in, visit the ‘Help’ and ‘Contact Us’ pages.

Lodging applications for funding and user guides

Funding applications must be lodged online through the ASIC Regulatory Portal. To lodge through the portal you will need to use the following transaction:

• Submit request for assetless administration funding

This replaces the previous funding request forms, EX02 (director bannings) and EX03 (other matters).

User guides

The following user guides explain how to submit an AAF application through ASIC’s regulatory portal:

• Director Banning User Guide (PDF 3.6 MB)
• Matters other than Director Banning User Guide (PDF 3.5 MB)
• Asset Recovery User Guide (PDF 3 MB)

If you need help registering to lodge online, contact us.

Abandoned Company Liquidator Panel

The Abandoned Company Liquidator Panel (Panel) comprises 32 suitably qualified and experienced registered liquidators. After ASIC orders the winding up of a company under Part 5.4C of the Corporations Act, the Panel members are required to wind up the company’s affairs, distribute its property and help employees to access unpaid employee entitlements under the Fair Entitlements Guarantee Act 2012.

The appointment of liquidators also facilitates a full and proper investigation into the reasons why the company failed and allows recovery of any voidable or unreasonable director-related transactions.

The funding for the Panel is from the AAF administered by ASIC. See the list of Abandoned Company Liquidator Panel members.

Reviewing Liquidator Panel

The Reviewing Liquidator Panel comprises 15 suitably qualified and experienced registered liquidators. When ASIC appoints a member as a reviewing liquidator under section 90-23 of Schedule 2 of the Corporations Act, ASIC expects the member to inquire, investigate and report on suspected illegal phoenix activity. This includes the conduct of the appointed external administrator where they appear to facilitate or have facilitated the activity through a lack of independence, or by not conducting adequate investigations and reporting both to creditors and ASIC.

These services aim to promote market confidence in the corporate insolvency regime and support the Government’s reforms aimed at combatting illegal phoenix activity. See the list of Reviewing Liquidator Panel members.

More information

• Media release about the establishment of the AA Fund
• Registered liquidator portal

What's new

Insolvency reforms commenced on 1 January 2021

Reforms to corporate insolvency laws commenced on 1 January 2021 for companies with liabilities less than $1 million. These reforms include:

• a new debt restructuring process for incorporated businesses
• a new, simplified liquidation pathway for small businesses, and
• a new class of registered liquidator who can only undertake the debt restructuring process.

The following legislation and rules gave effect to the reforms:

• Corporations Amendment (Corporate Insolvency Reforms) Act 2020
• Corporations Amendment (Corporate Insolvency Reforms) Regulations 2020
• Insolvency Practice Rules (Corporations) Amendment (Corporate Insolvency Reforms) Rules 2020

Industry funding

The Government has introduced new laws that change the way ASIC is funded. Regulated entities will receive an invoice for ASIC’s regulatory services delivered in the prior year. Find out what this means for registered liquidators.

Quicklinks

• Insolvency Law Reform Act 2016
• Media releases on insolvency
• Liquidator registration applications
• Registered liquidator disciplinary decisions
• Insolvency statistics
• AFSA – ARITA – ASIC joint liaison meetings

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ASIC Corporate Insolvency Update

Published notices

View insolvency and deregistration notices on the published notices website.