The regulation of insolvency practitioners: getting to 'trust and confidence'

Abstract

This article examines the regulation of New Zealand insolvency practitioners in the context of current reform initiatives in New Zealand, in particular the pending Insolvency Practitioners Bill. Benchmarking the current system against Australian, United Kingdom and Irish law and practice, and international standards, the article concludes that the Insolvency Practitioners Bill is an insufficient response to a regulatory gap which exists, and fails to meet the need to promote the "trust and confidence" recommended by New Zealand's Law Commission. In light of the trans- Tasman commercial law harmonisation agenda of the two governments. current Australian proposals for insolvency practitioner regulation should be closely tracked in New Zealand. and at a minimum. there should be "positive licensing" rather than the (in effect) negative licensing system in the latest version of the Bill. In the future. an insolvency code of practice should also be adopted in New Zealand.