The Government has released an exposure draft of the primary amendments to be included in an Insolvency Law Reform Bill in 2013. The draft Bill implements reforms previously released in the proposals paper, A modernisation and harmonisation of the regulatory framework applying to insolvency practitioners in Australia.
The draft Insolvency Law Reform Bill 2013 would amend various Acts to:
- align and modernise the registration and disciplinary frameworks that apply to registered liquidators and registered trustees;
- align and modernise a range of specific rules relating to the handling of personal bankruptcies and corporate external administrations;
- improve the powers available to the corporate regulator to regulate the corporate insolvency market and the ability for both regulators to communicate in relation to insolvency practitioners operating in both the personal and corporate insolvency markets.
A second tranche of the Bill is expected to be released shortly setting out further consequential amendments to the corporate and personal insolvency legislation as a result of these reforms, along with transitional measures. Draft regulations will also be released shortly for public consultation.
COMMENTS are due by 8 March 2013.
Source: Parliamentary Secretary to the Treasurer press release No 058, 19 December 2012
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