ASIC has today released its updated regulatory guidance for individuals who are or wish to become registered liquidators. The guidance was updated to reflect several developments since it was first published in March 2017.
The updates to Regulatory Guide 258 Registered liquidators: Registration, ongoing obligations, disciplinary actions and insurance requirements (RG 258), and its supporting documents and templates, follows consultation with industry on our proposed changes.
The updated RG 258 reflects reforms to the corporate insolvency legislative framework in 2021, our experience in administering the regime, various Administrative Appeals Tribunal decisions and industry feedback.
ASIC has also updated RG 258 to make the application process, ongoing obligations, disciplinary process, and other requirements to become a registered liquidator, easier to understand.
The updates include:
- adding separate guidance on applications for registration for each category of liquidators, including small business restructuring practitioners, a new type of registered liquidator created by the 2021 insolvency law reforms
- providing guidance on when a registration committee may exercise its discretion to register an applicant who does not meet the 4,000 hours experience requirement during the five years immediately preceding the application, which potentially helps address the gender imbalance in the profession
- providing additional guidance to registered liquidators on maintaining their qualifications, experience, knowledge and abilities, as well as how to remain a fit and proper person.
ASIC released Consultation Paper 376 Registered liquidators: Registration, ongoing obligations, disciplinary actions and insurance: Updates to RG 258 and supporting documents and templates (CP 376) in March 2024.
Report 796 Response to submissions on CP 376: Updates to RG 258 and supporting documents and templates (REP 796) highlights the key issues raised during the consultation and details our responses to those issues. All respondents to CP 376 welcomed ASIC's proposal to update RG 258 and we value the feedback provided.
As part of our response to the consultation, we adopted a suggestion about providing additional guidance on our approach to liquidators that suspend or cancel their registration, then seek to re-register.
Feedback that we did not incorporate includes suggested additional registration requirements for New Zealand insolvency practitioners (as these are determined by the Trans-Tasman Mutual Recognition Act 1997 (TTMRA)).
We also concluded that it was not appropriate to adopt some specific suggestions made in relation to registration and disciplinary committees.
