AFSA highlights regulatory
LegalCompliance7/05/2021 12:00:00 AM

Bankruptcy & Insolvency - AFSA highlights regulatory priorities for 2021-22

On 1 July 2021, the Australian Financial Security Authority (AFSA) released its Personal Insolvency Compliance Program 2021–22, Regulatory Charter and Regulatory Actions Cooperation and Support Policy. These documents underpin AFSA’s regulatory priorities and enforcement obligations for the forthcoming year, particularly in relation to personal insolvency and the Personal Property Securities Register (PPSR).

Personal Insolvency Compliance Program 2021–22
Each year AFSA establishes a compliance program based on trends and current issues in the personal insolvency system. The objective of AFSA’s Personal Insolvency Compliance is to document focus areas for AFSA in order to maintain public confidence in the personal insolvency system and to support debtors and creditors by making compliance within the insolvency system more straightforward.

AFSA’s 2021–22 compliance program has the following 3 key focus areas:

  1. Support vulnerable users of the insolvency system (particularly in the wake of the COVID-19 pandemic which may see more users enter the system),
  2. Drive willing compliance and engagement in the insolvency system, and
  3. Strengthen trust and confidence in the insolvency profession (this ties closely to focus area 2 above).

Regulatory Charter

AFSA’s Regulatory Charter is a new document which outlines AFSA’s approach to regulation in respect of its role within the financial services sector. It guides the regulatory strategies for insolvency and the PPSR by outlining how priorities are set, measured and reported, as well as detailing AFSA’s compliance framework and methodology.

The Regulatory Charter is supported by AFSA’s insolvency and personal property securities strategies, as well as the compliance toolkit which outlines AFSA’s statutory powers and the informal tools used by parties such as the Inspector-General in Bankruptcy, the Official Receiver and the Personal Property Securities Register.

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 AFSA’s cooperation and support policy are as follows:

  1. Assistance and support will only be considered where an individual has fully and frankly cooperated with AFSA,
  2. AFSA does not have the power to grant immunity from prosecution, and
  3. Several factors will be considered when offering an individual a Letter of Comfort, preparing joint submissions in civil cases and cooperating with the Commonwealth Director of Public Prosecutions (CDPP) in criminal cases.

You can read more about AFSA on our Pinpoint™ platform here.

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Sources: AFSA news, Personal Insolvency Compliance Program 2021–22, the Regulatory Charter and Regulatory Cooperation & Support Policy, 1 July 2021, accessed 2 July 2021.

AFSA, Personal Insolvency Compliance Program 2021–2022, accessed 2 July 2021.

AFSA, Regulatory Charter, 2 July 2021, accessed 2 July 2021.

AFSA, Regulatory Actions Cooperation and Support Policy, accessed 2 July 2021.

CCH Pinpoint ®, Australian Financial Security Authority (AFSA), 6 April 2021, accessed 2 July 2021.