Changes make registration easier to navigate and clarify ongoing responsibilities
The Australian Securities and Investments Commission (ASIC) has introduced updated guidelines aimed at streamlining the registration process and clarifying ongoing requirements for registered liquidators. These changes, which reflect recent reforms in the corporate insolvency sector and feedback from industry stakeholders, are detailed in the revised Regulatory Guide 258 (RG 258).
The updates follow a series of changes to insolvency laws in 2021 and include new guidance for small business restructuring practitioners, a category of liquidator created under the reforms. ASIC has also made it easier for liquidators to understand the registration and disciplinary processes, addressing concerns raised during a consultation with the industry earlier this year.
One key update provides flexibility for applicants who don’t meet the 4,000 hours of experience typically required within the five years prior to applying. This move, which ASIC notes may help reduce gender imbalances in the profession, allows registration committees to exercise discretion in specific cases.
In addition, the updated guidance includes more detailed instructions for registered liquidators on maintaining professional qualifications, meeting ongoing experience requirements, and ensuring they continue to be fit and proper persons in the role.
Feedback from the March 2024 consultation (Consultation Paper 376) was largely positive, with many welcoming the revisions. ASIC also adopted suggestions to offer clearer guidance for liquidators who suspend or cancel their registration and later seek re-registration. However, certain recommendations—such as additional requirements for New Zealand insolvency practitioners—were not implemented due to existing regulations under the Trans-Tasman Mutual Recognition Act 1997 (TTMRA).
The updated RG 258 and the report summarizing responses to the consultation Report 796 are now available for download on the ASIC website.
