The Ministry of Business, Innovation & Employment (MBIE) has released a discussion paper outlining proposals for regulations to implement the IPRA. The IPRA was passed in June 2019 and must come into force by 17 June 2020. The IPRA has introduced a co-regulatory licensing regime for insolvency practitioners. To read a summary of the IPRA, please click here. Regulations must be made under the IPRA to implement the legislation.
The proposed milestones and regulations for implementation of the IPRA
The discussion paper outlines the proposed milestones for implementation of the IPRA, as follows:
|15 October 2019||Deadline for submissions to MBIE in relation to the proposed regulations.|
|November 2019||MBIE to report back to the Minister of Commerce and Consumer Affairs on submissions
and proposals for the regulations.
|December 2019||Cabinet approval to be sought for the proposed regulations.|
|May 2020||Regulations made.|
|June 2020||The IPRA comes into force.|
The regulations will cover amongst other things:
What about minimum standards?
The discussion paper clarifies that the Registrar will set the minimum standards for the licensing of insolvency practitioners and accreditation of accredited bodies. These standards will be made by the Registrar by notice in the Gazette, rather than through regulations. MBIE will provide a separate consultation on the proposed minimum standards for practitioners (timing to be confirmed).
How do the proposed regulations affect insolvency practitioners?
The proposed regulations set out the potential licensing fees that insolvency practitioners will have to pay to MBIE for a licence to cover the operating costs of the regime. The regulations also propose further information that will be included on the register of insolvency practitioners.
Fees and levies
MBIE has proposed that the Registrar’s operational costs of insolvency practitioner regulation be recovered through:
The proposed licence registration fee for practitioners is $170, plus an annual registration fee of $105. Naturally, these fees are in addition to any fees that may be charged by accredited bodies in relation to licence applications and to cover accredited body costs. A modest levy of $1.15 will be collected alongside company registration and annual return fees.
Further information to be included on the register of insolvency practitioners
The IPRA sets out the minimum information that must be included on the register of insolvency practitioners. This information includes the practitioner’s name, business address, types of insolvency engagements in respect of which the practitioner is authorised to undertake, any licence conditions, and any disciplinary history during the past seven years. The regulations propose that some further information be recorded on the register, such as the practitioner’s business email address and website address. If the practitioner works for a firm, the practitioner’s firm, firm’s business email address, and New Zealand Business Number (NZBN) will also be included.
How can I have my say?
Submissions on the proposed regulations are open until 15 October 2019 and can be made here. Please contact us if you would like more information about the proposed regulations.