Plan To Regulate Insolvency Sector Welcomed

A plan to regulate the insolvency sector and shut down unscrupulous operators is being welcomed by an industry body, Radio New Zealand reported. The government has released the first part of a review into insolvency laws, which recommends licensing for practitioners and steps to improve protection for creditors in voluntary liquidations. The working group's report said current regulation fell short of ensuring creditors could have confidence that practitioners handling corporate insolvency are qualified and bound by an acceptable code of ethics. It also documented several cases of dishonesty, incompetence and failures to manage conflicts of interest by those handling insolvencies. Partner John Fisk with business advisory firm PWC was a member of the working group, and said New Zealand's standards were lagging behind many other countries. He said those in charge of insolvencies were handling large sums of money in trust on behalf of creditors in difficult circumstances. Read more.
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