Document ID: chunk:federal_register_of_legislation:F2020L01668:body:0:p3
Version: federal_register_of_legislation:F2020L01668
Segment Type: other
Provision Reference: 
Character Range: 5678–8612

and proper person.

3.3 If an applicant is a company, the Inspector-General must approve the application on being satisfied that the applicant passes the basic eligibility test, has the ability to immediately perform the duties of a debt agreement administrator to a satisfactory standard, is assessed to have adequate and appropriate professional indemnity and fidelity insurances, is a fit and proper person, and each director of the company is a fit and proper person.

3.4 The Inspector-General must approve an application for a renewal of registration by an individual or a company if the applicant still satisfies the requirements in section 186C of the Act. In addition, the Inspector-General must approve an application for renewal if the applicant does not owe more than the prescribed amount of notified estate charges. A person will owe a notified estate charge if they owe a charge under the Bankruptcy (Estate Charges) Act 1997 or a penalty under section 281 of the Act. The Inspector-General will notify an administrator of outstanding notified estate charges prior to their renewal.

Who needs to become registered?

 3.5 From 27 June 2019, any individual or company that intends to be nominated as an administrator of a debt agreement must be registered under the Act.

3.6  It is a condition of registration that each individual who has overall management responsibility of a company's debt agreement activities must be either a registered administrator or a registered trustee (more information is provided at 'who can apply').

Who does not need to become registered?

3.7 Registered trustees are not required to apply to be registered as an administrator. As a trustee administering debt agreements, they must adhere to the same duties and obligations under the Act as administrators. A breach of these duties will provide grounds for considering possible sanctions or disciplinary action under section 40-40 (Schedule 2 of the Act - Insolvency Practice Schedule (Bankruptcy) (IPS)). If such action results in the person's deregistration as a trustee, they will cease to be the administrator of the debt agreement/s and will be replaced with the Official Trustee (sub-section 185ZB(3) of the Act).

Who can apply

Individuals

3.8 Adults can be registered as administrators provided they:

       * pass the basic eligibility test

       * have the ability (including the knowledge) to satisfactorily perform the duties of an administrator in relation to a debt agreement

       * have such qualifications and experience as are prescribed by the Regulations

       * are assessed to have adequate and appropriate fidelity and professional indemnity insurances (or are noted under a corporate policy held by a registered company administrator)

       * are a fit and proper person

       * are a member of the Australian Financial Complaints Authority (AFCA), if required.

Companies

3.9