Corporations Point-in-Time Service Updates

The Corporations Point-in-Time Service has been updated to include the Treasury Laws Amendment (Corporate Insolvency Reforms Consequentials) Regulations 2021 (Cth) and the Financial Sector Reform Amendment (Hayne Royal Commission Response—Better Advice) Regulations 2021 (Cth).

Treasury Laws Amendment (Corporate Insolvency Reforms Consequentials) Regulations 2021

On 24 September 2020 the Government announced reforms to Australia’s insolvency framework to better serve Australian small businesses, their creditors and their employees.

The reforms, which came into effect on 1 January 2021, introduced new insolvency processes suitable for small businesses, reducing complexity, time and costs. These processes enable more Australian small businesses to quickly restructure. Where restructure is not possible, businesses can wind up faster, enabling greater returns for creditors and employees.

The Treasury Laws Amendment (Corporate Insolvency Reforms Consequentials) Regulations 2021 seek to make consequential amendments to regulations which support the ongoing operation of the small business insolvency reforms.

Financial Sector Reform Amendment (Hayne Royal Commission Response—Better Advice) Regulations 2021

The Regulations amend the Australian Securities and Investments Commission Regulations 2001, the Corporations Regulations 2001 and the Tax Agent Services Regulations 2009 to:

• prescribe criteria for when ASIC must convene an FSCP;
• set allowances for witnesses summoned to appear at a hearing of an FSCP;
• provide that specified civil penalty provisions are not taken to be significant (and therefore may not be reportable) under the breach reporting regime;
• prescribe sanctions that must be included on the Register of Relevant Providers;
• provide for the Minister to be able to delegate the functions and powers to approve foreign qualifications to officers in the Department of Treasury;
• extend the deadline for certain existing providers to pass the financial adviser exam;
• set requirements (including eligibility criteria, fees and transitional provisions) for non-relevant providers (individuals, companies and partnerships) who provide tax (financial) advice services to be registered as tax agents under the TAS Act; and
• make consequential amendments to the Tax Agent Services Regulations 2009 to remove references to tax (financial) advisers and recognised tax (financial) adviser associations.

These amendments have been updated in the Point-in-Time Corporations Service current to 13 January 2022. (NB: subscription required).

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