On 24 November 2020, CA ANZ provided feedback to Treasury on the exposure drafts of the subordinate legislation associated with the Insolvency reforms.
Key Points in our feedback include:
- We acknowledge that issues arise when establishing and implementing rigorous reforms in such a short timeframe. Nevertheless, we believe the long-term integrity of the external administration system, the public’s confidence and a sustainable economic recovery are dependent on ensuring robust processes.
- We consider that after the nine months of temporary measures, a very large number of affected companies may have a substantial debt burden, low level of physical assets available for restructure and very modest cash generating prospects. The tragedy of these realities should, in no way, be compounded by allowing a false hope of a Part 5.3B restructure delivering a return to viability.
- We recommend including additional experience and qualification requirements for restructuring practitioners in the rules as we consider it critical that the standards, qualifications and experience of restructuring practitioners are at an appropriately high level whilst backed by a commitment of professional ethics and standards.
We would like to thank the CA ANZ Insolvency Management Committee for contributing to our submission.
Insolvency reforms to support small business
Exposure draft and accompanying explanatory materials.Read about the reforms and subordinate legislation