AFSA Notice—Review of independence and pre-insolvency advisors

Friday, August 5, 2016

AFSA asked a selection of registered trustees and all registered debt agreement administrators to provide information on the written or informal arrangements that they had in place with third parties.

In total, 27 registered trustees and 37 registered debt agreement administrators (RDAAs) were asked to provide a response on the level of interaction with pre-insolvency advisors or other referrers.

Of those contacted, 98 per cent complied with the request for information. One RDAA did not respond but their registration lapsed during the survey period.

Of those who responded, 18 per cent said they had some form of written or informal agreement with pre-insolvency advisors or referrers and 82 per cent said they had no agreements in place.

AFSA is undertaking further investigations into 14 per cent of respondents (seven trustees and two RDAAs), based on the information provided.

AFSA will continue to monitor and investigate the level of independence associated with agreements provided by practitioners during the current 2016-17 compliance programme.

AFSA continues to place high importance on the independence of those practicing in the personal insolvency industry to protect the integrity of the industry and those affected in these matters, particularly debtors, bankrupts and creditors.