Insolvency Practitioners Regulation Act passed into law
The Insolvency Practitioners Regulation Act 2019 was passed by Parliament on 17 June 2019 and is expected to come into force in June 2020.
This Insolvency Practitioners scheme will bring in new licensing requirements, provide effective ways for holding insolvency practitioners to account, and raise the standards of insolvency practice over time.
The Registrar of Companies will be responsible for granting accreditation to bodies who, in turn, can license insolvency practitioners.
There is still work to be done over the next few months on what the criteria and timelines will look like to do this, including fees, rules and regulations and consultation on these matters. In the meantime, the Companies Office and the Ministry of Business, Innovation & Employment (MBIE) will keep you informed of each step as the Insolvency Practitioners scheme is rolled out.
The Act provides for the licensing of insolvency practitioners by accredited bodies. The Registrar of Companies is responsible for granting accreditation to bodies who can license practitioners.
Current insolvency practitioners, those wanting to be insolvency practitioners and bodies interested in being accredited to license insolvency practitioners will be affected by the new Act.
The timelines for implementing the new Act
The substantive obligations on insolvency practitioners to be licensed in the Insolvency Practitioners Regulation Act are expected to come into force in June 2020.
The specific requirements, including minimum standards, for licensing and accreditation will be published before June 2020. A timetable for when these requirements will be available is yet to be finalised. More information will be posted on the Companies Office website over the next few months as the timeline for implementing the Insolvency Practitioners scheme is finalised, including requirements for licensing and accreditation.
How you can keep up to date
If you are likely to be impacted by the new Act there is nothing you need to do now. You might want to stay tuned to the Companies Office website as all updates on the Insolvency Practitioners Regulation Act’s implementation will be posted here.