The Australian Financial Security Authority (AFSA) has now released its 2015-16 Insolvency Practitioner Compliance Program.

Whilst the program is not compulsory, the program represents a best-practice model for stakeholders, including bankruptcy trustees, creditors, debtors and various government bodies.  The program identifies the following five focus areas for AFSA over the coming 12 months, being the compliance issues identified as both emerging and continuing:

1. Practitioners’ outlays and expenses with a strong focus on the reasonableness of remuneration and expenses of practitioners and consideration of the level of benefit received by the practitioner;
2. Independence and pre-insolvency advisors with an aim to ensure and encourage arms-length dealings with respect to pre-insolvency dealings;
3. Timely action with a focus on ensuring timely distributions to creditors;
4. Practitioner accounts and records and in particular integrity of returns; and
5. Proactive monitoring of Section 73 and Part X focusing on the veracity of related entity claims, disclosure and thoroughness of reporting to creditors prior to making recommendations.

We recommend that all insolvency practitioners take the time to peruse the program.