Insolvency Practice Rules 2016 – draft for comment

The Rules in support of the Insolvency Law Reform Act 2016 have been released in draft for comment by 4 November 2016. These follow an earlier statement of what the Rules would contain issued in 2014. The long delay has been the subject of comment on this site.

The Rules

The Rules are:

Insolvency Practice Rules (Corporations) 2016, regarding the insolvency of companies and the registration and conduct of insolvency practitioners;
Insolvency Practice Rules (Bankruptcy) 2016, regarding personal insolvency and the registration and conduct of bankruptcy trustees;
Corporations and Other Legislation Amendment (Insolvency Law Reform) Regulation 2016, which amends the Bankruptcy Regulations 1996, Corporations Regulations 2001 and other relevant regulations consequential upon the Insolvency Practice Rules. This also provides for the partial delay of the corporate law amendments under the Act;
Insolvency Law Reform (Transitional Provisions) Regulation 2016, which provide for the partial delay of the personal insolvency amendments under the Act; and
Corporations (Fees) Amendment Regulation 2016, which allows for an increase in fees under the Insolvency Practice Rules (Corporations) 2016.

Bodies everywhere

Of some interest is the proposed nomination of various “bodies” to various roles:

“industry body” which can refer a practitioner to a regulator;
“prescribed body” which can nominate people to sit on a registration or discipline panel; or which body may be given confidential information to allow it to perform a “prescribed function”; and
“prescribed professional disciplinary body” which may be given confidential information to allow it to perform one of its functions – CAANZ, CPA and IPA are presently prescribed: ASIC Reg 8AA; and
“professional accounting body” – CPA, CAANZ, IPA are prescribed: ASIC Reg 2AC

Consolidated Bankruptcy Act

An ‘advance consolidation’ of the Bankruptcy Act, as it will appear in 2017, has been released, and is on-line.

Apart from allowing preparation for the start of the new law – the Bankruptcy Act is substantially changed and re-numbered – this consolidation will assist in understanding these draft rules. Contact me for details.