Media Release – Insolvency practitioners lose registrations
In the past six months, Insolvency and Trustee Service Australia (ITSA) has terminated or negotiated the resignation of four insolvency practitioner registrations.
Chief Executive of Insolvency and Trustee Service Australia, Veronique Ingram said the outcome is the result of its investigations.
“Intelligence gathered from our regulatory inspections and complaints received revealed that these particular practitioners had failed to maintain the standards we expect.” Ms Ingram said.
“In all cases, the matters being handled by these former practitioners have been transferred to either registered practitioners or the Official Trustee.
As a result of the investigations, ITSA identified various breaches of the Bankruptcy Act 1966 and fiduciary duties, including:
- taking remuneration in excess of that fixed by creditors
- failing to adequately communicate and keep creditors, debtors and bankrupts informed of material developments
- inadequately investigating property, assets and income
- failing to maintain adequate books, records and documentation in relation to decisions made.
ITSA is unable to release any additional or case specific information at this time.
“We also ask any members of the public affected by insolvency, whether they be debtors, bankrupts or creditors, who have complaints about the actions of practitioners to contact ITSA’s Regulation and Enforcement business line on 1300 364 785 if they cannot first resolve their concerns directly with the practitioner,” she said.
“ITSA will continue to apply its regulatory powers to ensure Australia remains one of the most equitable and efficient personal insolvency systems in the world.
“One of the key roles of the Inspector-General in Bankruptcy is to investigate concerns that are proactively identified or raised with respect to the actions of insolvency practitioners.
“Any breaches of the Bankruptcy Act 1966 will be investigated thoroughly and we urge any complainant to contact us immediately.
“It’s important that Australians are confident in a system that is transparent, fair and strong fostering open lines of communication and appropriate outcomes between stakeholders at all times.
“Practitioners who materially and systemically deviate from their statutory duties and obligations will be held to account,” Ms Ingram said.
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