Following consultation, ASIC today released new Regulatory Guide 258 Registered liquidators: Registration, disciplinary actions and insurance requirements (RG 258).
RG 258 explains:
- how to apply for registration as a liquidator, including the requirements a person must meet to become a registered liquidator;
- the renewal of registration process;
- the disciplinary and other actions that a registered liquidator may be subject to; and
- our policy on adequate and appropriate insurance
In Consultation Paper 276 Registered liquidators: Registration, disciplinary actions and insurance requirements (CP 276) ASIC sought feedback on its 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), to reflect changes to the law enacted by the Insolvency Law Reform Act 2016.
We received seven non-confidential submissions. Our feedback report sets out the key issues that arose out of the submissions received on CP 276 and our responses to those issues: Report 514, Response to submissions on CP 276 - Registered liquidators: Registration, disciplinary actions and insurance requirements (REP 514).
ASIC continues to work with the Australian Financial Security Authority and the Australian Restructuring Insolvency & Turnaround Association to implement these reforms; elements of which commence today.
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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.