Oct 142011
 

The Government has examined the case for making one regulator responsible for both personal insolvency laws and corporate insolvency laws and decided to retain the status quo. 

Hence, it will be business as usual for the Insolvency Trustee Service Australia (personal insolvency) and the Australian Securities and Investments Commission (corporate insolvency).

The Australian Productivity Commission (APC) recommended in its report on the Annual Review of Regulatory Burdens on Business: Business and Consumer Services (the Report) that the Government consider the option of having a single regulator of what are, in many respects, similar laws

In response to this recommendation (part of number 4.3), the Government says:

“The Government is not proposing to establish a new single regulator of personal and corporate insolvency regimes. There would be major upfront costs of merging the regulators, which may not necessarily be offset by long-term savings.  The extent to which simply unifying the regulators would result in an improved regulatory environment is not clear.  Separate policy considerations apply to many aspects of personal and corporate insolvencies and there is not currently sufficient evidence that a one-size-fits-all approach for all issues would necessarily optimise outcomes for stakeholders.  The removal of the responsibility for regulation of corporate insolvency from the corporate regulator would result in corporate insolvency losing its important connection with other parts of ASIC, for example in relation to major corporate administrations, regulation of insolvent trading and of director and corporate misconduct that may have occurred in the lead up to, or during, an insolvency event.”

  The Government’s formal response to the Report was released by the APC on 13 October 2011 and may be found HERE.

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Government says taskforce to align insolvency laws is unnecessary

 Official Inquiries, Productivity Commission 2010, Regulation  Comments Off on Government says taskforce to align insolvency laws is unnecessary
Oct 142011
 

The Australian Productivity Commission (APC) recommendation that a taskforce  be established to identify personal and corporate insolvency provisions and processes that could be aligned has been formally rejected by the Government.

The APC recommendations were made in its report in October 2010 on the Annual Review of Regulatory Burdens on Business: Business and Consumer Services (the Report). The Government’s formal response to the Report was released by the APC on 13 October 2011 and may be found HERE.

 In response to the APC’s recommendation (number 4.3) for a taskforce, the Government says that it:

” agrees that there should be greater consistency between the personal and corporate insolvency systems. Significant work is already being progressed by relevant government agencies to identify areas for greater harmonisation, and therefore the Government believes that establishing a taskforce is unnecessary and may duplicate work already being undertaken.  The Government will facilitate the closer alignment of the personal and corporate insolvency laws through its options paper, A Modernisation and Harmonisation of the Regulatory Framework Applying to Insolvency Practitioners in Australia, which was released on 2 June 2011.  This paper canvasses options for the registration, regulation and remuneration of participants in the corporate and personal insolvency industries.”

 

 

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Oct 132010
 

The Australian Productivity Commission (APC) has recommended that a  taskforce be established “to identify personal and corporate  insolvency provisions and processes that could be aligned.  The case for making one regulator responsible for both areas of insolvency law should also be examined.”

This recommendation is made in the APC’s report, titled “Annual Review of Regulatory Burdens on Business: Business and Consumer Services Sector” , released yesterday.

For the APC’s discussion and recommendation concerning insolvency practitioners, see Chapter 4 – Regulatory barriers for occupations, Part 4.5, pages 169 to 176.

(The full report on the numerous business sectors examined can be found here.)

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