Causes of business failure in personal insolvency

 Debt Administration, Insolvency Law, Insolvency practices, Insolvency Statistics, Personal Bankruptcy, Phoenix company activity  Comments Off on Causes of business failure in personal insolvency
Aug 132015
 

What reasons are given for the failure and insolvency of non-corporate businesses, i.e., those owned by individuals as sole traders or in partnership? Is there any alignment between the reasons given for non-corporate business failures and the reasons given for corporate failures? And where a non-corporate (aka personal) business  insolvency has been brought about by the phoenix scheme of a corporate customer or client, is this made known to the regulator for statistical purposes?

This article is an extension of the discussion in my post  “Confusing causes of corporate insolvency”. Continue reading »

Free Insolvency & Recovery Services Directory

 Corporate Insolvency, Debt Administration, Industry People, Insolvency Consultants, Personal Bankruptcy, Services Directory  Comments Off on Free Insolvency & Recovery Services Directory
Jan 142014
 

On the Insolvency Interface blog site menu

I have created a directory facility for insolvency practitioners, lawyers and other consultants that provide specialist insolvency and recovery services (corporate and personal) to list their names and contact details.  This facility is available free of charge and obligation free until 30 June 2014.

Just click on the menu item “Insolvency & Recovery Services Directory” (above).

Then on “Submit a Listing”, and follow the prompts.  You will be asked to enter your category of service, business name, location, phone number, and a description of your services.  You can also supply certain other information if you like, such as your web site address.

Visitors will be able search the directory by business name, category of service, location, etc.

Peter Keenan 14/1/2014

Government says no to single regulator of insolvency laws

 ASIC, Official Inquiries, Personal Bankruptcy, Productivity Commission 2010, Regulation  Comments Off on Government says no to single regulator of insolvency laws
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.

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.”

 

 

Proposed merger of Australian insolvency regulators is formally rejected

 Australian Senate 2009-2010, Insolvency practices, Official Inquiries, Regulation  Comments Off on Proposed merger of Australian insolvency regulators is formally rejected
Jun 062011
 

The Government has just announced another inquiry into the conduct of insolvency practitioners. This inquiry will consider “reforms with a view to address possible misconduct in the insolvency profession and to improve the value for money for recipients of insolvency services.”

The release of an “options paper” titled “A modernisation and harmonisation of the regulatory framework applying to insolvency practitioners in Australia”,  follows the often feverish 2010 Senate Economics References Committee inquiry into the role of liquidators and administrators, their fees and their practices, and the involvement and activities of the Australian Securities and Investments Commission.

In issuing the options paper the Government says that the Senate Committee’s recommended that the corporate insolvency arm of ASIC be transferred to ITSA to form a new personal and corporate insolvency regulator will not be accepted.

The paper calls for comment and suggestions aimed at ensuring that the framework for insolvency practitioners: 

•  promotes a high level of professionalism and competence by practitioners; 

•  promotes market competition on price and quality; 

•  promotes increased efficiency in insolvency administration; and 

•  enhances communication and transparency between stakeholders.

To obtain a copy of the paper CLICK HERE.

Interested parties are invited to comment on the paper. Closing date for submissions: Friday, 29 July 2011.  Address written submissions to:
The Manager
Governance and Insolvency Unit
Corporations and Capital Markets Division
The Treasury
Langton Crescent
PARKES ACT 2600
Email: insolvency@treasury.gov.au

Enquiries:  Timothy Beale on (02) 6263 2870.

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