Insolvency law working group

The Insolvency Review Working Group (Working Group) was a panel of experts set up in November 2015 to examine aspects of corporate insolvency law.

They looked at voluntary liquidations including phoenix companies, voidable transactions including Ponzi schemes and regulation of insolvency practitioners. The Working Group also had a mandate to examine other areas of potential reform in this area. The Working Group produced two reports.

Report No. 2

In March 2017, the Working Group provided to the Minister of Commerce and Consumer Affairs its second report. Report No. 2 covers the topics of voidable transactions, Ponzi schemes and other corporate insolvency matters.

Consultation process

On 15 May 2017, the Minister of Commerce and Consumer Affairs announced the release of Report No. 2 for public consultation. The Ministry sought the public’s views on the recommendations contained in the Working Group’s second report and on an outstanding recommendation from Report No. 1, on whether to introduce a director identification number. Submissions closed on 23 June 2017.

Report No. 1

In August 2016 the Working Group provided to the Minister of Commerce and Consumer Affairs its first report. Report No.1 covers the topics of insolvency practitioner regulation and issues around voluntary liquidations.

Consultation process

On 25 August 2016, the Minister of Commerce and Consumer Affairs announced the release of Report No. 1 for public consultation. The Ministry sought public views on the recommendations contained in the Working Group’s report. Submissions closed on 7 October 2016.

Submissions

Submissions closed on 7 October 2016 and a total of 29 submissions were received.

Introducing a co-regulation licensing regime for insolvency practitioners

In October 2016, on recommendation of the Working Group’s Report No. 1, and based on support by submitters, Cabinet agreed to amend the Insolvency Practitioners Bill to introduce a co-regulatory licensing regime for insolvency practitioners, alongside a number of additional amendments.