ADVOCACY
AIIP continues to advocate for Insolvency Practitioners, for improved outcomes for the insolvency industry. Your AIIP Board has recently lodged a submission in response to ASIC’s request for feedback on proposed changes to its guidance on RG16 ‘External administrators – reporting and lodging’.
Broadly, AIIP advocated for:
Clear and separate guidance on our obligations as IPs between the two distinct functions of section 533 of the Corporations Act 2001: investigating and reporting.
Limiting amendments to ASIC’s guidance to cosmetic changes, pending the Government’s response to the Parliamentary Joint Committee’s Inquiry into Corporate Insolvency, given the emphasis on the need for a comprehensive review of insolvency law.
The full submission is available by login into your AIIP portal and heading to the RESOURCES section.
AIIP will continue to advocate for IPs. Should you have any feedback, or wish to express an interest to participate in any of our future advocacy projects, please get in touch.
Cost Effective Examinations
The AIIP has asked ASIC to help find a better way to assist liquidators conduct cost effective and efficient examinations of company directors, their advisors and stakeholders. Currently the excessive financial & time cost of public examinations prevents timely investigations and impedes the payment of dividends to creditors. A quicker and more cost effective method of examination will benefit creditors, regulators and the proper functioning of commercial enterprise in Australia. The AIIP is awaiting feedback from the ASIC.
Streamlined liquidations lodgements
The AIIP has asked ASIC to assist with the simplification of form lodgements required in external administrations. AIIP asks, could the form 507, replace the need for lodgement of a form 5604/509 & 507? Are forms 505 and 205 both necessary in a CVL & MVL? Are forms 5603 and 505 both necessary?
Minor adjustments to the forms Liquidators are required to lodge will elicit significant efficiency gains in the administration and regulation of external administrations.
Trustee Companies
The AIIP asserts legislative reform is required so liquidators of trustee companies will not be required to make expensive applications to court to carry out basic tasks of selling assets and seeking approval of remunerations. The beneficiaries of these changes will include creditors, regulators, the courts and liquidators. The AIIP looks forward to raising this issue with the regulators.
DIRECTOR IDENTIFICATION NUMBERS
The AIIP has lodged a submission with government on the introduction of director identification numbers. Click here to download a copy of the submission.