Self-regulation of insolvency practitioners

Due to both a lack of sufficient legislative regulation and in order to bring New Zealand Insolvency Practitioners further in line with Australia and other jurisdictions, the Restructuring Insolvency and Turnaround Association of New Zealand (RITANZ) working alongside Chartered Accountants Australia New Zealand (CAANZ) has developed a framework of self-regulation.

Under the various acts Insolvency Practitioners are charged with administering, there are only negative licensing regimes in effect. These regimes only exclude individuals from acting as Insolvency Practitioners if they fail to meet a specific set of criteria. These include the Insolvency Practitioner being:

  1. over the age of 18;
  2. of sound mind;
  3. not currently an undischarged bankrupt;
  4. and having no continuing business relationship with the insolvent company.

 

This new framework requires Insolvency Practitioners that are members of RITANZ to provide evidence of their relevant experience, skills, and that they are a ‘fit and proper’ person in order to become Accredited Insolvency Practitioners.

Under this framework you will be able to expect a consistent approach between Insolvency Practitioners and reliable and fair outcomes for all parties affected by an insolvency. As a part of the new framework, Accredited Insolvency Practitioners are now subject to CAANZ rules and its complaints/disciplinary procedures. In addition there is a public register established and maintained on the CAANZ website.

McDonald Vague is pleased to advise that the directors are Accredited Insolvency Practitioners under the recent framework. McDonald Vague is a Chartered Accounting Practice and also subject to practice review. Many insolvency practitioners that practise do not have disciplinary bodies that monitor their work nor a professional body providing guidance, resources and expertise.

Please contact us if you have any queries in relation to the new Accredited Insolvency Practitioners framework or any insolvency related queries.

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