Document ID: chunk:federal_register_of_legislation:F2020L01668:body:0:p15
Version: federal_register_of_legislation:F2020L01668
Segment Type: other
Provision Reference: 
Character Range: 38273–41109

and Enforcement will then liaise with the administrator to ascertain the status of uncompleted debt agreements and to ensure that necessary work has been undertaken prior to accepting the request. Generally approval will only be given if all the following requirements are met:

       * all accounts are reconciled and in order

       * the administrator has assisted or is able to assist AFSA in the transfer of all funds and records needed

       * any other outstanding work on the part of the administrator to comply with the Act and meet their duties has been completed.

4.15   The cancellation will only take place once the resignation is accepted by the Inspector-General. The administrator will be advised and the AFSA website will be updated when this occurs. Any incomplete agreements that remain at the time of the cancellation will be transferred to the Official Trustee in AFSA unless other arrangements for transfer as prescribed by law have taken place.

Ineligibility of an unregistered administrator

4.16 Prior to 27 June 2019, an individual or company who was not registered as a debt agreement administrator under the Act could also be asked for a written explanation why they should continue to be eligible to act as a debt agreement administrator, if the Inspector-General had reasonable grounds to believe that they have failed to properly carry out the duties of an administrator in relation to the debt agreement.

4.17  This provision under section 186M of the Act will not apply from 27 June 2019 at which time all debt agreement administrators will be required to be registered to lodge proposals with the Official Receiver.

Matters considered by the Inspector-General

4.18 When considering whether a registration should be the Inspector-General will consider the following matters:

       * the importance of the duty that has not been complied with or the breach of the Act

       * the seriousness of the effect of a failure to comply, including the impact of the failure to comply

       * an administrator's performance history including whether previous failures to comply with the Act or undertake the duties have been raised.

4.19 Usually an administrator will be given opportunity to rectify simple breaches, such as an oversight in reporting to creditors. However if the issue is considered sufficiently serious such as in the case of accounting irregularities, or if the issue has not been rectified within the requested time frame, the Inspector-General may issue a formal notice of the breach of duty to the administrator. The administrator then has 28 days to explain or show cause why their registration should not be cancelled. The final decision as to whether the registration should be cancelled will be made by the Inspector-General upon review of the administrator's