The ILRA is here

Having been in process since 2013, the first tranche of the Insolvency Law Reform Act 2016 (ILRA) changes comes into effect today.

As you may be aware, the majority of the changes impact the registration and discipline processes for Registered Liquidators and Trustees (we no longer have Official Liquidators).

However, some changes to administration processes apply from today. See: ILRA: Eight changes commencing 1 March which are easily overlooked  (members only).

As a result of a query raised by ARITA – and notwithstanding contrary advice proffered elsewhere – it has been clarified that the requirement to lodge Declarations of Independence, Relevant Relationships & Indemnities (DIRRIs) only applies to voluntary administrations at this stage.

ASIC has confirmed the requirement to lodge DIRRIs for creditors voluntary liquidations does not commence until 1 September.

ASIC released its ‘Regulatory Guide 258 Registered liquidators: Registration, disciplinary actions and insurance requirements’ and requisite forms today, and AFSA’s website has already been updated for the new requirements.

Given the extraordinary complexity of the ILRA changes, we urge all ARITA members to attend our training sessions to ensure you will be compliant with the changes.

Specialised courses: Creditors, Corporate Administrations, Personal Administrations – will prepare IPs for the more substantive 1 September amendments – commencing May 2017.