A person who makes a false is currently no corresponding representation that they are a trustee offence. will have committed an offence A registered trustee must maintain: A registration committee must be satisfied that an applicant will take adequate and appropriate out insurance against liabilities that indemnity insurance; and the applicant may incur working as a adequate and appropriate trustee before a trustee can be fidelity insurance; registered but the Bankruptcy Act against the liabilities that the trustee does not specify what type of may working as a registered insurance must be obtained. trustee. The Inspector-General may, by legislative instrument, determine what constitutes adequate and appropriate insurance. A registered trustee who fails to There is no offence provision comply with his/her insurance connected with the failure by a trustee requirements may have committed an to comply with their insurance offence. requirements. Trustees will be required to inform A trustee is required to notify the the Inspector-General if an expanded Inspector-General if they are number of events happen (for convicted of an offence involving example if they are disqualified from or dishonesty or if they enter into managing corporations). an insolvency administration. The Inspector-General will be able to The Inspector-General can only cancel a trustee’s registration without cancel a trustee’s registration first referring it to a committee under involuntarily if they are giving effect a number of prescribed to the decision of a committee. circumstances. The Inspector-General will be able to A disciplinary committee can decide suspend a trustee’s registration under that a trustee’s registration be a number of prescribed cancelled. circumstances. Detailed explanation of new law Working cooperatively with ASIC 1.9 The Inspector-General must work cooperatively with the Inspector-General in Bankruptcy in relation to persons who are, have been or may become both registered trustees under the Bankruptcy Act and registered liquidators under the Corporations Act. [Schedule 2 Insolvency Practice Schedule (Bankruptcy), Part 2, Division 10, section 10-5)
A person who makes a false representation that they are a trustee will have committed an offence is currently no corresponding offence. A registered trustee must maintain: adequate and appropriate indemnity insurance; and adequate and appropriate fidelity insurance; against the liabilities that the trustee may working as a registered trustee. The Inspector-General may, by legislative instrument, determine what constitutes adequate and appropriate insurance. A registration committee must be satisfied that an applicant will take out insurance against liabilities that the applicant may incur working as a trustee before a trustee can be registered but the Bankruptcy Act does not specify what type of insurance must be obtained. A registered trustee who fails to comply with his/her insurance requirements may have committed an offence. There is no offence provision connected with the failure by a trustee to comply with their insurance requirements. Trustees will be required to inform the Inspector-General if an expanded number of events happen (for example if they are disqualified from managing corporations). A trustee is required to notify the Inspector-General if they are convicted of an offence involving or dishonesty or if they enter into an insolvency administration. The Inspector-General will be able to cancel a trustee’s registration without first referring it to a committee under a number of prescribed circumstances. The Inspector-General can only cancel a trustee’s registration involuntarily if they are giving effect to the decision of a committee. The Inspector-General will be able to suspend a trustee’s registration under a number of prescribed circumstances. A disciplinary committee can decide that a trustee’s registration be cancelled. Detailed explanation of new law Working cooperatively with ASIC 1.9 The Inspector-General must work cooperatively with the Inspector-General in Bankruptcy in relation to persons who are, have been or may become both registered trustees under the Bankruptcy Act and registered liquidators under the Corporations Act. [Schedule 2 Insolvency Practice Schedule (Bankruptcy), Part 2, Division 10, section 10-5)
C2014-050_EM_ILRB.docx