Reporting misconduct to AFSA

Confidentially report personal insolvency practitioner misconduct to AFSA. Your report may help hold them accountable and protect people affected by insolvency.

On this page

Overview of AFSA’s role

AFSA:

  • Receives reports of misconduct about practitioners
  • Uses reports to detect system-wide trends
  • Acts on significant harms

AFSA does not:

  • Resolve complaints
  • Give legal advice
  • Act as mediators in disputes

Types of practitioners you can report

You can report misconduct about the following types of personal insolvency practitioners who are regulated under the Bankruptcy Act 1966:

  • Registered Trustees
  • Registered Debt Agreement Administrators
  • Official Trustee (AFSA)
  • Solicitor Controlling Trustees.

Reports are sent to the Inspector-General in Bankruptcy, who ensures regulated entities meet required standards.

Examples of misconduct to report

Examples of misconduct include:

  • making unauthorised transactions or other trust accounting concerns
  • charging excessive or unnecessary fees
  • manipulating personal insolvency agreements or creditor meetings to protect wealth
  • giving advice that encourages debtors not to comply with obligations
  • unprofessional or discourteous behaviour
  • delays or lack of action
  • bias or lack of impartiality.

AFSA's role when you report misconduct

Reports of misconduct are an important source of information that helps AFSA detect system-wide issues. We also use our own data and investigations to target matters that align with our Regulatory Action Statement.

When you report misconduct to AFSA, we:

  • receive reports of misconduct confidentially (unless you give written authority to share)
  • use reports to detect system-wide concerns in the personal insolvency system
  • act on significant harm in line with our Compliance and Enforcement Policy
  • conduct statutory reviews of selected trustee decisions
  • review trustee remuneration in appropriate circumstances.
How we prioritise cases

We prioritise cases where action will protect the public or improve the integrity of the insolvency system.

When deciding where to focus our resources, we consider whether the:

  • conduct or harm is of significant public interest
  • conduct caused, or may cause, serious harm to an individual, business or group
  • conduct represents widespread or systemic issues
  • conduct is fraudulent, intentional or reckless, or involves dishonesty or a history of non-compliance.

All reports are recorded and reviewed by AFSA staff. Not every report is investigated, and not every investigation leads to enforcement action. AFSA does not resolve complaints or provide dispute resolution.

What we cannot do or help with

When making a report, be aware that AFSA does not:

  • undo court-ordered bankruptcies
  • interfere with a trustee's lawful discretion
  • respond to every report of misconduct.

AFSA cannot assist with the following matters, as they fall outside our regulatory role:

  • how you were made bankrupt, including court and creditor actions
  • your credit history
  • how property is dealt with (if within the practitioner’s lawful discretion)
  • creditor claims and distributions
  • travel applications
  • litigation decisions
  • requests for records (in the first instance)
  • changing your trustee.
When we will contact you

We will:

  • acknowledge receipt of your report
  • email you after we review your report
  • contact you if we need further information.

We do not provide regular updates during investigations.  If the matter is of significant public interest, AFSA may release a statement (please refer to our Newsroom for all publicly released statements).

Ways to report misconduct

You can report misconduct online, or via email, phone or post. The process is the same regardless of how you report.

Email: info@afsa.gov.au
Phone: 1300 364 785
Post: GPO Box 1550, Adelaide SA 5001

If you have a disability and need assistance, please let us know.

Legal options beyond AFSA

Reporting misconduct does not affect your right to take legal action. Personal insolvency practitioners are also regulated by the Federal Court, which may provide outcomes beyond AFSA's powers. You should seek independent legal advice before taking action.

Expectations of practitioners

Practitioners should not claim remuneration for time spent communicating with AFSA about:

  • reports of misconduct relating to them or their administrations, unless the report is spurious, frivolous, vexatious or an abuse of process
  • regulator surveillance, professional audits, file inspections or peer reviews.

For more information, read the ARITA Code of Professional Practice (PSI8: Remuneration).