The regulation, registration and remuneration of insolvency practitioners in Australia: the case for a new framework

The regulation, registration and remuneration of insolvency practitioners in Australia: the case for a new framework

14 September 2010

© Commonwealth of Australia 2010
ISBN 978-1-74229-227-4

View the report as a single document - (PDF 1704KB)

View the report as separate downloadable parts:

Membership of Committee (PDF 174KB)
Acronyms (PDF 9KB)
Glossary [1] (PDF 56KB)
List of Recommendations (PDF 129KB)
Chapter 1 - Introduction (PDF 62KB)

The focus of the inquiry
Conduct of the inquiry
Past inquiries and reform
Context of the inquiry
Key themes and the structure of the report

PART 1 - An overview of the corporate insolvency industry in Australia (PDF 136KB)

Market size
Industry profile
ASIC's activities
Final comment

Chapter 3 - The role and duties of liquidators and administrators in the insolvency process in Australia (PDF 276KB)

The administration of companies in financial difficulty
The role of an administrator—an overview
The role of a receiver—an overview
The role of a liquidator—an overview
Secured and unsecured creditors
Voluntary administration
Deeds of company arrangement
Creditors' scheme of arrangement
Winding up (liquidation)
Treatment of employees' entitlements
Duties and responsibilities of a liquidator and the 'fit and proper' provisions of the Corporations Act

Chapter 4 - The role of the regulator, disciplinary body and industry representative: ASIC, the CALDB and the IPAA (PDF 55KB)

Australian Securities and Investments Commission
Companies Auditors and Liquidators Disciplinary Board
Insolvency Practitioners Association of Australia

PART II - The evidence that the regulation of the insolvency industry needs reform (PDF 143KB)

The Ariff case
Other disciplinary cases
Submitters' reflections on the state of the insolvency industry

Chapter 6 - The evidence of regulatory failure and the need for a more proactive approach (PDF 128KB)

Identifying regulatory failure
Criticism of ASIC's role
Criticism of the Companies Auditors and Liquidators Disciplinary Board

Chapter 7 - The system for registering insolvency practitioners (PDF 147KB)

The registration process
Broadening the practitioner base
An interview process
A written examination
Professional Indemnity Insurance
A licensing regime
Stratifying registration
A single registration body
Professional education

Chapter 8 - The remuneration of liquidators and administrators (PDF 132KB)

Chapter outline
Methods of charging
The level of fees charged by liquidators and administrators
Priority payment for liquidators
The regulation of liquidators' and administrators' fees
The need for better data on fees in the insolvency industry

PART III - Reforming Australia's corporate insolvency system (PDF 79KB)

A familiar theme
The need for better data on insolvencies
Options for reform
Committee view

Chapter 10 - Options to improve the framework for regulating and remunerating the insolvency profession in Australia (PDF 165KB)

A specialised insolvency regulatory agency
Proactive regulation
The Companies Auditors and Liquidators Disciplinary Board
An Insolvency Ombudsman
Voluntary administration and Chapter 11 Bankruptcy process
Registering practitioners

Chapter 11 - The committee's views and recommendations (PDF 125KB)

Regulating the profession
Proactive surveillance
An Insolvency Ombudsman
Better data
A final comment

APPENDIX 1 - Submissions Received (PDF 19KB)
APPENDIX 2 - Public Hearing and Witnesses (PDF 39KB)

For further information, contact:

Department of the Senate
PO Box 6100
Parliament House
Canberra ACT 2600

Phone: +61 2 6277 3540
Fax: +61 2 6277 5719