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Michael Murray’s on-going commentary on issues in corporate and personal insolvency law and related policy and law reform, in Australia and internationally. Given the scope of insolvency, this extends to business, consumer and professional conduct, and ethics, governance and regulation, criminal, tax, environmental and administrative law, and the courts and government.

 

Funding personal and corporate insolvency regulation

ASIC and AFSA

ASIC

The funding of ASIC under the draft ASIC Supervisory Cost Recovery Levy Regulations 2017 by way of proposed levies on liquidators would be calculated according to [the sub‑sector regulatory costs in relation to the liquidator sub‑sector for the financial year minus the product of $2500 and the sub‑sector population in relation to the liquidator sub‑sector for the financial year] multiplied by the sum of the number of the following appointments accepted (sic) by the entity during the financial year being appointments as a controller; as a liquidator; as a managing controller; as a receiver; as a receiver and manager; as a scheme manager; as a voluntary administrator; as an administrator of a deed of company arrangement, and the number of these appointments that were accepted (sic) in an earlier financial year and are ongoing at the start of the financial year for which the levy component is to be calculated, and the number of these events that are (required to be) published on the ASIC publication website for the entity during the financial year being a notice of meetings; notice of disclaimer of property; notice to submit particulars of debt or claims; notice to creditors to submit formal proof; notice of intention to declare dividend; and the number of these documents lodged with ASIC by the entity during the financial year being a notice of the outcome of a proposal to pass a resolution without a meeting but if more than one proposal to pass a resolution without a meeting in relation to the same administration is decided on the same day, bulk bill them as a single lodgement; an executed deed of company arrangement but if the deed involves more than one company under external administration, count the deed as one lodgment; all divided by the number specified by ASIC in an annual determination to be the sum of the amounts of entity metric for all leviable entities that form part of the sub‑sector for the financial year, save that if a component of the formula is nil, the amount of the graduated levy component is nil.

Treasury calls for comments on the draft by 26 May 2017.

AFSA

The funding of AFSA and its regulation of bankruptcy trustees is based on a 7% charge on assets realized by trustees (usually in excess of $300 million) net of costs indemnities, costs of running the bankrupt’s business, and less amounts paid to secured creditors.  The 7% charge is paid automatically by trustees through “AER Online“.  

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