Document ID: chunk:federal_register_of_legislation:F2020L01668:body:0:p13
Version: federal_register_of_legislation:F2020L01668
Segment Type: other
Provision Reference: 
Character Range: 32792–35818

4.2 The following information provides guidelines on matters considered by the Inspector-General in determining whether to cancel a registration of an administrator.

Involuntary cancellation of an individual's or company's registration

4.3 The basic eligibility test continues to apply during the period of registration. The Inspector-General must cancel an individual's registration as a debt agreement administrator if the Inspector-General is satisfied that the individual no longer passes the basic eligibility test.

4.4 A company must ensure that at all times it has in its employ at least one qualified individual who has overall management responsibility for the company's debt agreement activities as that will be a condition of the company's registration. The basic eligibility test applies to these individuals who are required to be registered and if they become ineligible they will automatically lose their registration. As this is a condition of the company's registration it will prompt commencement of the involuntary cancellation process.

4.5 If a director becomes ineligible, any company of which the person is a director is also ineligible to act as an administrator and the company's registration must be cancelled.

Grounds for cancellation

4.6 The Inspector-General may ask for a written explanation why an individual should continue to act as a debt agreement administrator, if the Inspector-General has reasonable grounds to believe that the individual:

       * no longer has the ability (including the knowledge) to satisfactorily perform the duties of an administrator in relation to a debt agreement

       * has failed to properly carry out the duties of an administrator in relation to a debt agreement

       * no longer has the qualifications or experience prescribed by Regulations

       * ceased to have adequate and appropriate fidelity or personal indemnity insurance against the liabilities that the individual may incur working as a registered debt agreement administrator

       * is not a fit and proper person

       * has contravened a condition of registration.

4.7 The Inspector-General may ask for a written explanation why the company should continue to act as a debt agreement administrator, if the Inspector-General has reasonable grounds to believe that the company:

       * no longer has the ability (including the knowledge) to satisfactorily perform the duties of an administrator in relation to a debt agreement

       * has failed to properly carry out the duties of an administrator in relation to a debt agreement

       * cased to have adequate and appropriate fidelity or personal indemnity insurance against the liabilities that the company may incur working as a registered debt agreement administrator

       * is not a fit and proper person

       * a director of the company is not a fit and proper person

       * has contravened a condition of registration.

4.8 Such action may follow the identification of breaches and