Practitioner Surveillance, Enforcement and Compliance statistics

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Commentary and statistics

These two sections will be updated approximately each quarter with year-to-date statistics.

See our commentary and statistics on:

Practitioner Surveillance YTD 2023-24

July 2023 to March 2024

  • 7 new insolvency practitioner registration approved
  • 13 inspections finalised
  • 124 Complaints finalised
  • 63 applications for Inspector-General reviews finalised
  • 6 creditor meetings attended by AFSA
  • 6 Insolvency advertisement reviews finalised

Registrations

Trustees

During the period, there were 6 applications to become a registered trustee approved.

There have been 2 registered trustees that resigned/retired during the year.

Find more information about registration of trustees in Processes for registration of trustees (IGPS13).

Debt agreement administrators

During the period, there was 1 registration application approved to become a registered debt agreement administrator.

2 debt agreement administrators resigned/retired during the year.

Find more information about registration of debt agreement administrators in Processes for registration of debt agreement administrators (IGPS4).

Complaints against practitioners

During the period, 124 complaints were finalised. Of these, 8 were found to be justified.

The most common complaints made were:

  • Decisions concerning assets (24)
  • General administration & Accounting (19)
  • Lack of information or communication (19)

Find more information about our complaint handling process in Process for handling complaints against practitioners and debtors (IGPS10).

Inspector-General reviews

During the period, we finalised 63 applications for review by the Inspector-General in Bankruptcy of trustee decisions. Of these, 3 trustee decisions were overturned [1].

The decision overturned was:

  • Income assessment of a bankrupt (2)
  • Objection to discharge of a bankrupt (1)

Find more information about reviews of trustee decisions in Statutory reviews of trustees’ decisions (IGPS12).

Meetings of creditors

During the period, we intervened at, or prior to, 4 meetings of creditors.

The reasons for intervening were:

  • to address procedural deficiencies (2)
  • to undertake further investigations (1)
  • to amend proposal to include priorities (1)

Please note, these are preliminary results for the year and due to the timing of the completion of matters may be subject to change—particularly when considered in the context of annual results.

[1]Overturned includes all decisions that were cancelled or varied.

Enforcement Statistics YTD 2023-24

July 2023 to March 2024

Personal insolvency related (Bankruptcy Act 1966)

  • 273 alleged offence referrals assessed
  • 23 official cautions issued
  • 10 briefs of evidence forwarded to CDPP
  • 14 briefs accepted for prosecution by CDPP#

# Includes a portion of the briefs prepared and referred to the CDPP in the previous financial year.

Offence referrals and investigations

Alleged offence referrals:

273 offence referrals were assessed during the period, of which 95 were accepted for investigation.

Investigations

We assess alleged offence referrals for investigation as either compliance or complex offence matters.

Compliance offences

During the period, 30 compliance investigations were completed.

Complex offences

During the period, 34 complex investigations were completed.

Prosecutions

49 persons were prosecuted for a total of 82 charges during the period. Of those charges, 56 were proven with conviction, 8 were proven without conviction, 1 was not proven and 17 were withdrawn.

Charges per offence Offence
20 Fail to file statement of affairs (Section 54(1))
2 Fail to comply with a section 139ZL notice (Section 139ZO(1))
1 Fail to comply with a 139ZQ notice (Section 139ZT(1))
8 A person who conceals property with intent to defraud (Section 263(1)(d))
2 Fail to disclose particulars of disposition of property within 2-year period immediately preceding date of bankruptcy (Section 265(1)(b))
4 Conceal, remove, deal with property during bankruptcy (Section 265(4)(a) read with 265(7))
1 Obtain property by fraud after bankruptcy (Section 265(5)(a))
3 Incur any debt or liability by fraud during bankruptcy (Section 265(5)(b))
1 A person shall not refuse or fail to comply with a requirement under section 77A, or 130 (Section 265A(1))
3 Disposes of, or creates a charge on any property during bankruptcy with intent to defraud creditors (Section 266(1))
11 Within 12 months before bankruptcy disposes of, or creates a charge on any property with intent to defraud creditors (Section 266(3))
6 Make a false declaration (Section 267(2))
10 Failure to comply with a Notice (Section 267B(1))
1 Dispose of property, committing fraud, by a person who signs a 188 authority within 12 months previous (Section 268(7))
1 Obtain goods or services alone or jointly without disclosing bankruptcy or being party to a debt agreement by promising to pay >$3,000 (Section 269(1)(ac))
3 Promising to supply goods or render services without disclosing bankruptcy or being party to a debt agreement >$3,000 (Section 269(1)(ad))
1 False or misleading information (Section 137.1 Criminal Code Act 1995)
3 False or misleading documents (Section 137.2 Criminal Code Act 1995)
1 Complicity and common purpose (Section 11.2 Criminal Code Act 1995)

PPSR related (Personal Property Securities Act 2009)

There have been 3 referrals assessed for alleged contraventions of the Personal Property Securities Act 2009 during the period.

Please note, these are preliminary results for the year and due to the timing of the completion of matters may be subject to change—particularly when considered in the context of annual results.

Data sets

This information expands on that contained in our annual report and provides stakeholders with improved qualitative data.

Enforcement and Practitioner Surveillance historical compliance activity time series

Further information

Practitioner Surveillance activities 2022-23
  • 13 new insolvency practitioner registrations approved
  • 39 inspections finalised
  • 194 Complaints against insolvency practitioners finalised
  • 130 applications for Inspector- General reviews finalised
  • 22 creditor meetings attended by AFSA
  • 2 Insolvency advertisements reviewed

Registrations

Trustees

During the year, there were 12 applications for individuals to become a registered trustee approved. 5 trustees resigned/retired during the year.

Find more information about registration of trustees in Processes for registration of trustees (IGPS13).

Debt agreement administrators

During the year, there was 1 registration application approved for debt agreement administrators. 6 debt agreement administrators resigned/retired during the year.

1 debt agreement administrators were involuntarily deregistered.

Find more information about registration of debt agreement administrators in Processes for registration of debt agreement administrators (IGPS4).

Inspections

The errors most commonly found during inspections were:

  • Failure to comply with certification duties (13)
  • Failure to maintain proper records (11)
  • Property and asset errors (6)

Find more information about our inspection program in Monitoring and inspection of bankruptcy trustees and debt agreement administrators (IGPS11).

Complaints against practitioners

During the year, 194 complaints were finalised. Of these, 14 were found to be justified. The most common complaints made were:

  • Lack of information or communication (43)
  • Decisions concerning assets (39)
  • Inappropriate conduct or conflict of interest (34) The most common justified complaints made were:
  • Lack of information or communication (5)
  • General administration & Accounting (3)
  • Decisions concerning assets (3)

Find more information about our complaint handling process in Process for handling complaints against practitioners and debtors (IGPS10).

Inspector-General reviews

During the year, we finalised 130 applications for review by the Inspector-General in Bankruptcy of trustee decisions. Of these, 11 trustee decisions were overturned[1].

The decisions overturned were:

  • Objection to discharge of a bankrupt (5)
  • Income assessment of a bankrupt (4)
  • Remuneration review (2)

Find more information about reviews of trustee decisions in Statutory reviews of trustees’ decisions (IGPS12).

Meetings of creditors

During the year, we intervened at, or prior to, 12 meetings of creditors. In addition, we attended 22 creditor meetings.

The most common reasons for intervening were:

  • Procedural deficiencies addressed (7)
  • To provide guidance to the trustee (3)
  • Supplementary report prepared (2)

These are preliminary results for the year and due to the timing of the completion of matters may be subject to change.

[1]Overturned includes all decisions that were cancelled or varied.

Enforcement activities 2022-23
  • 206 referrals accepted for investigation
  • 489 alleged offence referrals assessed
  • 71 official cautions issued
  • 3 infringement notices issued
  • 48 briefs of evidence forwarded to CDPP
  • 53 briefs accepted for prosecution by CDPP*

# Include a portion of the briefs prepared and referred to the CDPP in the previous financial year.

Offence referrals and investigations

Alleged offence referrals

489 offence referrals were assessed in the year, of which 206 were accepted for investigation.

Investigations

We assess alleged offence referrals for investigation as either compliance or complex offence matters.

Compliance offences

During the year, 107 compliance investigations were completed. Of these, 40 alleged offenders complied with their obligations after Enforcement intervention.

Complex offences

During the year, 106 complex investigations were completed.

Infringement notices

During the year, 1 infringement notice was issued to a registered trustee and 2 to creditors.

Prosecutions

91 persons were prosecuted for a total of 174 charges during the year. Of those charges, 40 were withdrawn, 104 were proven with conviction, 13 were proven without conviction, 5 dismissed and 12 not proven.

The dollar value of those charges laid was $1,410,186.

Charges per offence Offence
37 Fail to file statement of affairs (Section 54(1))
1 Fail to comply with a 139ZQ notice (Section 139ZT(1))
3 A person who conceals property with intent to defraud - Section 263(1)(d)
6 Fail to disclose particulars of disposition of property within 2 year period immediately preceding date of bankruptcy (Section 265(1)(b))
3 Fail to disclose information about examinable affairs (Section 265(1)(ca))
2 Omit material particular from a statement relating to any of the bankrupt’s examinable affairs (Section 265(1)(f))
4 Conceal, remove, deal with property during bankruptcy (Section 265(4)(a))
2 Conceal, remove, deal with property during bankruptcy (Section 265(4)(a) read with 265(7))
1 Incur any debt or liability by fraud during bankruptcy (Section 265(5)(b))
1 Incur any debt or liability by fraud within 12 months of bankruptcy (Section 265(5)(b) read with 265(7))
2 Refuse of fail to comply with a requirement under section 77A or 130 (Section 265A(1))
35 Disposes of, or creates a charge on any property during bankruptcy with intent to defraud creditors (Section 266(1))
24 Within 12 months before bankruptcy disposes of, or creates a charge on any property with intent to defraud creditors (Section 266(3))
15 Make a false declaration (Section 267(2))
26 Failure to comply with a Notice (Section 267B(1))
1 Obtain credit alone or jointly without disclosing bankruptcy or being party to a debt agreement >$3,000 - Section 269(1)(a)
1 Obtain goods or services alone or jointly without disclosing bankruptcy or being party to a debt agreement by promising to pay >$3,000 (Section 269(1)(ac))
2 Promising to supply goods or render services without disclosing bankruptcy or being party to a debt agreement >$3,000 (Section 269(1)(ad))
1 Gambling or hazardous speculations - Section 271(a)
5 Leave Australia without consent (Section 272(1)(c))
1 Attempt to commit an offence (Section 11.1 - Criminal Code Act 1995)
1 False or misleading documents (Section 137.2 Criminal Code Act 1995

PPSR related (Personal Property Securities Act 2009)

There have been two referrals assessed for alleged contraventions of the Personal Property Securities Act 2009 during the period.

Please note, these are preliminary results for the year and due to the timing of the completion of matters may be subject to change—particularly when considered in the context of annual results.