Debt Agreement Reforms – Industry Wide Conditions

As part of the Bankruptcy Amendment (Debt Agreement Reform) Act 2018, the Attorney-General has signed a legislative instrument which will commence on 1 January 2021. 

The Bankruptcy (Registered Debt Agreement Administrator Conditions) Determination 2020 introduces a number of industry wide conditions for all registered debt agreement administrators (DAA) as at 1 January 2021 relating to:

  • Advertising and promotions of the services of a DAA
  • Disclosure of information to debtors by the DAA
  • Recording and retention of information disclosed to debtors by the DAA
  • DAA membership of the Australian Financial Complaints Authority

In November 2020, AFSA will release a number of updated guidance documents on the expectations of registered debt agreement administrators on our online consultation website AFSAsandpit. This will provide you with an opportunity, prior to 1 January 2021, to provide feedback on our proposed guidance.

To enable you to keep up to date with these changes as they are released into the AFSAsandpit, administrators can subscribe to the AFSAsandpit research group so they are automatically advised when new items are added. 

Further information about the reforms can be found on our FAQ page on the AFSA website. Or, you can contact AFSA at regulation [at] afsa.gov.au.

Jody Leong
Assistant Director Technical