The Australian Financial Security Authority (AFSA) has today released its Personal Insolvency Compliance Program 2021-22, Regulatory Charter and Regulatory Actions Cooperation and Support Policy. These three documents underpin AFSA’s regulatory and enforcement responsibilities in relation to personal insolvency and the Personal Property Securities Register.
Personal Insolvency Compliance Program 2021-22
Each year AFSA establishes and publishes a compliance program after reviewing trends and current issues in the personal insolvency system. The Personal Insolvency Compliance Program outlines focus areas for AFSA to maintain confidence in the personal insolvency system and support debtors and creditors by making compliance easier.
The 2021-22 program has three key focus areas:
- Support vulnerable users of the insolvency system
- Drive willing compliance and engagement
- Strengthen trust and confidence in the profession
The Personal Insolvency Compliance Program 2021-22 is now available on the AFSA website.
AFSA’s Regulatory Charter is a new document that outlines our approach to regulation in respect of our roles within the financial services sector. It guides the regulatory strategies for insolvency and the Personal Property Securities Register (PPSR) by explaining how priorities are set, measured and reported, as well as the compliance framework and methodology.
The Charter is supported by AFSA’s insolvency and personal property securities strategies, as well as the compliance toolkit which outlines our statutory powers and the informal tools used by the Inspector-General in Bankruptcy, the Official Receiver and the Personal Property Securities Registrar, and provides transparency on our regulatory approach.
The Regulatory Charter can be accessed via AFSA’s website.
Regulatory Actions Cooperation and Support Policy
The new Regulatory Actions Cooperation and Support Policy outlines how AFSA will support those who cooperate in an investigation and/or prosecution where it is suspected that more than one person is involved in misconduct, fraud or other alleged criminal conduct.
The principles underpinning the policy are:
- Assistance and support will only be considered when a person has fully and truthfully cooperated with AFSA,
- AFSA does not have the power to grant immunity from prosecution,
- Several factors will be considered when offering a Letter of Comfort, preparing joint submissions in civil cases, and cooperating with the Commonwealth Director of Public Prosecutions (CDPP) in criminal cases
The Regulatory Actions Cooperation and Support Policy is available on the AFSA website.
AFSA’s Deputy Chief Executive, Gavin McCosker said, ‘The personal insolvency system plays a critical role in supporting confidence in the economy and AFSA is working hard to ensure this system can support vulnerable Australians and is prepared to deal with any future scenario.’
‘AFSA’s Compliance Program for 2021-2022, along with our Regulatory Charter and Regulatory Actions Cooperation and Support Policy, will help us to continue our important work in this area and mitigate risks and harms in the upcoming year.’
For more information, visit AFSA’s website.