AFSA reports strong regulatory outcomes despite uncertain year

AFSA’s Personal Insolvency Compliance Report 2019-20, published in December, has highlighted the agency’s achievements in an unprecedented year.

The report provides compliance, regulation and enforcement statistics for 2019-20 and details activities for the key focus areas of debt agreement reform, trustee independence, untrustworthy advisors, remuneration and culture.

Despite the challenges of the COVID-19 pandemic, AFSA inspected more than 200 administrations, reviewed almost 300 personal insolvency proposals, and finalised over 350 complaints. More than 800 pre-referral enquiries and over 700 offence referrals were received with 552 accepted for investigation.

Of the inspections completed, 141 related to administrations conducted by Registered Trustees or Registered Debt Agreement Administrators. The remaining inspected administrations were conducted by the Official Trustee.

While more than 350 complaints were finalised, less than 5% were found to be justified. The most common of these related to conflicts of interest, delays in administration and poor communication.

The report also incorporates information and statistics from the Official Receiver for the first time, reflecting the critical role it plays in maintaining compliance within the personal insolvency system. In 2019-20, the Official Receiver issued more than 477 notices, which resulted in more than $50 million being paid into bankrupt estates.

The full report is available to download now at afsa.gov.au.