Government’s licencing system for insolvency practitioners

MEDIA RELEASE

RITANZ welcomes government’s licencing system for insolvency practitioners

Auckland, 30 November 2016: The Restructuring, Insolvency and Turnaround Association of New Zealand (RITANZ), the professional body for New Zealand insolvency practitioners, today welcomed the government’s decision to introduce a licensing system for insolvency practitioners.

RITANZ Chair Brendon Gibson says licensing of insolvency practitioners in New Zealand was “long overdue” and is something that the industry wants and the public should expect.

“Minister Paul Goldsmith’s move to introduce legislation will finally bring New Zealand in step with international standards as well as ensure consistency with the approach taken to other finance professionals such as auditors and financial advisors who are increasingly regulated. Most importantly it will help ensure the best outcomes for creditors and other stakeholders who find the company they have been dealing with is facing financial difficulties.”

“Currently almost anyone over 18 can operate as an insolvency practitioner, regardless of their experience, qualifications or criminal background. There is no compulsory code of conduct and no regulator supervising all insolvency practitioners, to whom disgruntled creditors and other members of the public may complain. The lack of regulation has no doubt led to poor outcomes.”

Mr Gibson says RITANZ has strongly advocated for higher standards of professionalism, ethics and integrity in the industry since it was formed in 2014.

“We are delighted the Government will leverage the self-regulation system developed earlier this year by the Chartered Accountants of Australia and New Zealand (CAANZ) and RITANZ to build trust and demonstrate our strong commitment to the highest standards of professionalism and integrity.

“Insolvency practitioners operate in complex and challenging circumstances with people who are often under financial and other stress. Those people should be able to trust the credentials, integrity and competence of the professional they are working with.”

RITANZ made submissions and was pleased to be involved with the Minister’s Insolvency Working Group. Mr Gibson says RITANZ is delighted that the bulk of its recommendations has been adopted.

ENDS

About RITANZ

RITANZ is the professional body for insolvency practitioners and for those working in the field of business reconstruction and turnaround, and corporate and personal insolvency in New Zealand. The organisation is affiliated with INSOL International, a worldwide federation of national associations for accountants and lawyers who specialise in turnaround and insolvency.

RITANZ is run by a Board of elected volunteers from the professional services sectors operating within or closely associated with the industry.

Our mission is to support insolvency and recovery professionals in their quest to restore the economic value of under-performing businesses, to assist financially challenged individuals and to help develop, maintain and promote the integrity of the insolvency profession.

We deliver this through the provision of innovative training and education, upholding ethical and professional standards, partnering with Chartered Accountants Australia and New Zealand on the development of self-regulation, and promoting the ideals of the profession to the public at large.

RITANZ has branches in Auckland, Wellington and Christchurch.

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