Insolvency Practitioners Register Goes Live
The insolvency sector, creditors and the public will benefit from enhanced practising standards, with the publicly accessible Insolvency Practitioners Register that went live on 1 September.
The recently enacted Insolvency Practitioners Regulation Act requires all insolvency practitioners to be licensed, and meet regulated minimum standards of honesty and competence, in order to take on any insolvency engagement (e.g. liquidation, receivership or administration). The publicly accessible Register identifies if an insolvency practitioner is licensed and has relevant information on their professional history, allowing businesses to make informed decisions about insolvency engagements.
MBIE’s Business Integrity Services General Manager Rob Rendle says “By introducing the new licensing requirements and effective ways for holding insolvency practitioners to account, we are raising the standards of insolvency practice over time, protecting creditors and the public”.
“Liquidators hold a position of real importance, so it’s important that they are held to the rigorous competency, honesty, and integrity criteria that come with obtaining and retaining a licence to act as an insolvency practitioner. This is what the new Act provides.”
The Act’s implementation has involved significant public and industry consultation, developing the licensing regime, along with developing policies for accredited bodies which will manage licensing. The Registrar of Companies is responsible for granting accreditation and for providing oversight of accredited bodies. Currently the only accredited body is the New Zealand Institute of Chartered Accountants, however the Restructuring, Insolvency and Turnaround Association of New Zealand has been recognised under the Act meaning its members can also be licensed by NZICA.
“The quality of a practitioner’s advice and decisions can have a significant impact on whether a business is rehabilitated or liquidated, and on the total amount of funds available for distribution to creditors.”
“All insolvency practitioners are placed in a position of managing and protecting other people’s money and property. It is critical, now more than ever in the current economic climate, that they act honestly, fairly, and impartially at all times,” says Mr Rendle.
The Registrar of Companies has published minimum standards, conditions and requirements for ongoing competence for the licensing of insolvency practitioners, and minimum standards for the accreditation of bodies.
The Insolvency Practitioners Register can be accessed here.