We provided a submission to the Epidemic Response Committee on the COVID-19 Response (Further Management Measures) Legislation Bill on 8 May 2020.
We focused our feedback on the areas relating to the debt hibernation regime and amendments to the insolvency regime.
Key high-level points from our response include:
- We broadly support the introduction of the debt hibernation scheme, along with the guide provided by the Companies Office.
- Given the complexity of the regime, we recommend Officials provide detailed guidance and templates on the scheme to help directors and creditors, particularly in smaller entities.
- We broadly support the amendments to the insolvency regime.
- The New Zealand Institute of Chartered Accountants (as the statutory body response for regulating New Zealand resident members of CA ANZ) intends to become an accredited body under the Insolvency Practitioners Regulation Act 2019 (IPR Act).
- CA ANZ supports the implementation of the IPR Act as it is an important step in providing for a professional, well-run insolvency profession in which the public can have trust and confidence. This is particularly important given the likely upturn in insolvency-related activity resulting from COVID-19.