Insolvency Practitioners Regulation Act 2019

The Insolvency Practitioners Regulation Act 2019 (the Act) introduced a co-regulatory licensing scheme to promote quality, expertise, and integrity in the profession of insolvency practitioners. It is modelled on the voluntary CA ANZ / RITANZ accreditation scheme.

The Act was originally scheduled to come into force on 17 June 2020. However, the Act will now commence on 1 September 2020.

Under the Act:

  • Accredited bodies are responsible for carrying out the frontline regulation of licensed insolvency practitioners, including licensing, regulating ongoing compliance, investigating complaints about them, and taking disciplinary action where appropriate.
  • As NZICA has statutory responsibilities under the New Zealand Institute of Chartered Accountants Act 1996 to regulate the practice of its members in New Zealand, NZICA is in the process of applying to become an accredited body.
  • The Companies Office Registrar has responsibility for oversight of accredited bodies. Oversight includes accreditation of bodies, ongoing monitoring and reporting, and corrective action to ensure the quality and effectiveness of the accredited bodies' regulatory systems and processes.
  • Any person taking new statutory insolvency appointments from 1 September 2020 must have a licence. If you are an Accredited Insolvency Practitioner, you may qualify for a transitional licence.

The Registrar maintains a register of licensed insolvency practitioners, which is publicly searchable.

An Accredited Insolvency Practitioner under the CA ANZ / RITANZvoluntary scheme may qualify for a transitional licence. A person having a transitional licence must then fully apply for an insolvency licence within 4 months of the commencement date.

NZICA members with a Certificate of Public Practice (CPP) can apply for a licence.

A non-NZICA member can also apply for a licence if they are either:

  • An overseas practitioner; or
  • A member of a "recognised body"; or
  • A practising member of a religious society or order whose doctrines or beliefs preclude membership of any organisation or body other than the religious society or order of which they are a member

To be granted a licence, a person must then meet the prescribed minimum standards. They must also be "fit and proper" to hold a licence.

An applicant who is not a member of an accredited body (e.g. NZICA) must also enter a Compliance Agreement with the accredited body. By signing the Compliance Agreement, the non-member agrees to abide by the accredited body's Code of Ethics, Rules, and disciplinary processes.

Licences are subject to "licence conditions" covering such matters as ongoing competency and training, compliance with relevant standards relating to insolvency engagements.

Each licence must also include a condition specifying the types of insolvency engagements in respect of which the person is authorised to act under their licence. The Registrar is required to maintain a register of licensed insolvency practitioners.

We are currently developing applications forms and further guidance and we will publish these on our website once the NZICA is accredited.

In the interim, if you have any queries or concerns, please contact us at regulation.nzica@charteredaccountantsanz.com