Annual confirmation and report

This is version 3.0 of this document, published on 30 September 2024

Part of: Accredited and recognised bodies

Section 37 of the Insolvency Practitioners Regulation Act 2019 (the Act) requires that each accredited body provide an annual confirmation and report, as directed by the Registrar of Companies (the Registrar). This document sets out the Registrar’s direction for an accredited body’s annual confirmation and report.

On this page:

Contents of the register

The register contains the following information for each licensed insolvency practitioner:

  • the insolvency practitioner’s full name and business address
  • the name of the relevant accredited body
  • dates relevant to the insolvency practitioner’s licensing, including the date of each licence that has been issued to the practitioner, and the expiry date of the insolvency practitioner’s current licence
  • the types of insolvency engagements in respect of which the insolvency practitioner is authorised
  • the conditions on the insolvency practitioner’s licence
  • details of any suspension, cancellation or other disciplinary action against the insolvency practitioner in the last 7 years
  • details of any prohibition orders against the insolvency practitioner
  • the insolvency practitioner’s firm
  • the insolvency practitioner’s business email address and website
  • the insolvency practitioner’s firm’s email address and website (if different from above)
  • the insolvency practitioner’s firm’s New Zealand Business Number (NZBN)
  • the country, state, or territory in which the insolvency practitioner is ordinarily resident
  • the insolvency practitioner registration number assigned by the Registrar of Companies

See further Insolvency Practitioners Regulation Act 2019, section 30 and Insolvency Practitioners Regulations 2020, regulation 5 .

Annual confirmation

Section 37(3) of the Act requires each accredited body to submit an annual confirmation, either confirming that the insolvency practitioner’s licence information on the register is correct to the best of the accredited body’s knowledge, or updating it as required.

In addition, regulation 10 of the Insolvency Practitioner Regulations provides that the annual confirmation of an accredited  body must be accompanied by a summary of:

  • the number of licence applications received by the accredited body in the year
  • the number and nature of complaints received by the accredited body in the year
  • any disciplinary actions taken by the accredited body in the year.

The Registrar directs that the following process be followed

Following the balance date of an accredited body, the Companies Office will provide each accredited body with machine-readable data from the register relating to that accredited body’s licensed insolvency practitioners (for example, a CSV file or similar). Balance date has the meaning in the Financial Reporting Act 2013.

Within 2 months of receiving the data from the Companies Office, the accredited body will review that data and either confirm it is accurate or note any required updates to the data using a secure online form (i.e. one submission per insolvency practitioner requiring updates).

We do not propose prescribing any other forms to be used or information to be supplied.

Transitional provision

If an accredited body provided an annual confirmation under the previous Registrar’s direction for an accredited body’s annual confirmation and report:

  • its next annual confirmation must be accompanied by a summary of:
    • the number of licence applications received by the accredited body from 1 September 2024 to the balance date of the accredited body
    • the number and nature of complaints received by the accredited body from 1 September 2024 to the balance date of the accredited body
    • any disciplinary actions taken by the accredited body from 1 September 2024 to the balance date of the accredited body.
  • its subsequent annual confirmations must be accompanied by a summary of:
    • the number of licence applications received by the accredited body in the year
    • the number and nature of complaints received by the accredited body in the year
    • any disciplinary actions taken by the accredited body in the year.

Fees

Fees payable by insolvency practitioners are set out in the Insolvency Practitioners Regulations 2020, Schedule 2. Each insolvency practitioner must pay an annual fee of NZD105 per practitioner (plus GST). Insolvency practitioners will pay this to their relevant accredited body (typically as part of their other professional membership fees). The accredited body will remit the annual confirmation fee in accordance with processes put in place directly between the Registrar and accredited body.

There is no annual confirmation fee directly payable by accredited bodies.

Reports

Content

Section 37(2)(b) provides that each accredited body’s report must contain:

  • information relating to the accredited body’s performance in carrying out its regulatory functions for the purposes of this Act;
  • information relating to any material changes to the accredited body’s regulatory systems that has been implemented, is in the process of implementing, or proposes to implement (including stating what it has done in response to any direction issued under section 42); and
  • any other information prescribed in regulations (see below).

Regulation 9 of the Insolvency Practitioner Regulations states that each accredited body report must also contain:

  • the accredited body’s most recent audited financial statements;
  • an assessment by the accredited body of the extent to which its regulatory systems are adequate and effective, and whether it has allocated sufficient resources to ensure that its regulatory systems are, and will continue to be, adequate and effective; and
  • information relating to any material changes to the accredited body’s governance and organisational structures.

Reporting direction

In addition to the information required under the Act and Regulations that is set out above, the Registrar directs that each accredited body’s report include the following information for each calendar year covered by the report:

  1. Membership and licensing:
    1. overview of how insolvency practitioner licensing requests have been assessed
    2. number of licence applications received
    3. total number of current licences
    4. a summary of any licence declines
  2. Monitoring and general oversight:
    1. overview of the monitoring activities of the accredited bodies, especially in ensuring compliance with the following areas:
      1. codes of ethics
      2. conditions of licence
      3. minimum standards
      4. insolvency and corporate laws
    2. summary of the outcomes of the above monitoring activities and an overview as to how issues have been addressed
    3. overview of current or emerging issues in the insolvency profession
    4. summary of any new or developed strategies to address or mitigate issues of non-compliance or other matters of concern
  3. Education and training:
    1. overview of how the accredited body promotes, monitors and reviews licensed insolvency practitioner on-going competence
    2. number of licensed insolvency practitioners that have been reviewed/assessed for on- going competence
    3. summary of any actions taken in response to non-compliance
  4. Complaints, enquiries, investigations and discipline:
    1. overview of the complaint process
    2. number and nature of complaints or referrals received regarding licensed insolvency practitioners
    3. number of investigations completed and underway based on complaints regarding licensed insolvency practitioners
    4. summary of the nature of the investigations, and any identified non-compliance with professional conduct or other accredited body rules and/or statutory obligations
    5. summary of the outcomes of the investigations (for example, no further action, referral to disciplinary committee, referral to Registrar etc.) and the results of any disciplinary action by the accredited body
  5. Confirmation of legal obligations:
    1. confirmation that the accredited body has complied with its obligations under the conditions of accreditation, including on-going compliance with the minimum standards
    2. for any identified issues of non-compliance, the nature of the non-compliance and the proposed remedial action.

Frequency and timing

Section 37(5) provides that reports must be supplied in accordance with the Registrar’s direction as to timing. This may be up to every 4 years.

The Registrar directs that each accredited body supplies:

What Period covered When
A first report under the Act Date of accreditation to the balance date of an accredited body in the calendar year following accreditation (“20YY”) As soon as practicable after the balance date of an accredited body in 20YY
A second report under the Act The balance date of an accredited body in 20YY to the balance date of an accredited body in 20YY+2 As soon as practicable after the balance date of an accredited body in 20YY+2
Subsequent reports under the Act 2-year periods from the previous report under the Act As soon as practicable after the balance date of an accredited body, in every second year from the previous report under the Act.

For example, if a body is accredited on 1 March 2020 and its balance date is 30 June 20YY:

  • the first report must cover the period from 1 March 2020 to 30 June 2021;
  • the second report must cover the period from 1 July 2021 to 30 June 2023; and
  • subsequent reports must cover 2-year periods from the date of the previous report of an accredited body.

Transitional provision

If an accredited body filed its first and second reports under the previous Registrar’s direction for an accredited body’s annual confirmation and report:

  • its next report must cover the period from 1 September 20YY+2 to the balance date of the accredited body in 20YY+4
  • its subsequent reports must cover 2-year periods from the previous report under the Act. 

Method

The Registrar directs that reports be sent electronically, but does not propose setting a particular form or mechanism (for example, online filing) at this time.

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