Insolvency compliance program 2021–22

In the 2021-22 financial year, AFSA will focus on the following three areas in its compliance program. These areas have been identified following an evaluation of information and data available to AFSA, as well as through consultation with the profession.

Support vulnerable users of the insolvency system

Why this is important

When people are financially distressed, they may not be able to make the most appropriate decision for their circumstances. It is important they have access to objective and accurate information about their options and obligations.

How we will achieve this

To support vulnerable users of the insolvency system, we will:

  • Ensure information is accessible and accurate at the right time through the appropriate channels
  • Ensure the public, especially those that are financially distressed, can make informed choices with accurate information about their personal insolvency options. We will connect the public to free services to provide trusted advice about insolvency
  • Disrupt people who provide misleading information and untrustworthy advice that risks the integrity of the personal insolvency system.

Drive willing compliance and engagement

Why this is important

Supporting all participants in the personal insolvency system to willingly comply with their obligations can reduce costs, avoid penalties and provide a better experience for everyone involved.

How we will achieve this

To drive willing compliance and engagement, we will:

  • Better understand and respond to compliance behaviours that lead people to comply. We will also work towards addressing the root causes of non-compliance
  • Enable compliance by making our systems easy to use, accessible, automated, personalised and secure
  • Engage with stakeholders to gather important information and intelligence to address risks and harms in the industry
  • Publish benchmarks for the profession to aspire to and recognise industry leaders
  • Collaborate with other regulators and use the full range of our powers to address non-compliance
  • Encourage debtors and creditors to comply with their obligations in a timely manner.

Strengthen trust and confidence in the profession

Why this is important

Those in financial difficulty rely on personal insolvency practitioners for their specialist knowledge, high quality services and trusted advice.

How we will achieve this

To strengthen trust and confidence in the profession, we will:

  • Strengthen practice management by monitoring controls and complaints
  • Provide guidance and raise awareness of the need to appropriately manage information, data and cybersecurity
  • Seek assurance that practitioners are maintaining their required hours of continuing professional development
  • Use our statutory powers to elicit cooperation and support the efficient administration of estates
  • Be intelligence and data driven to proactively target unexplained delays and unnecessary remuneration.

Want to know more?

For more information review our practice statements and regulatory processes.

We welcome your feedback in the AFSA sandpit.