ASIC has released updated misconduct reporting guidelines for administrators.

The Australian Securities and Investments Commission (ASIC) has introduced revised regulatory guidance for external administrators and controllers, specifically regarding the reporting of alleged misconduct. 

This update, part of Regulatory Guide 16 (RG 16), follows an extensive consultation process that included industry input via targeted roundtables.

Regulatory Guide 16 has long served as a framework for administrators reporting possible misconduct, particularly in insolvency cases where unsecured creditors stand to lose more than half of their claims. 

The current updates come in response to evolving case law, legislative reforms, and recommendations from a Parliamentary Joint Committee inquiry into corporate insolvency in Australia.

The revamped RG 16 is designed to streamline how administrators report statutory offences and potential misconduct. 

ASIC had initially sought industry perspectives in April 2024 through Consultation Paper 377 (CP 377), and the resulting feedback has shaped several key adjustments.

Among the significant changes is the establishment of a dedicated communication channel for administrators and controllers. 

This allows professionals to easily direct any questions about reporting obligations to ASIC through the new email contact: This email address is being protected from spambots. You need JavaScript enabled to view it..

ASIC has chosen to maintain the current flexibility in reporting, allowing administrators to file multiple initial statutory reports if needed. Timeliness is still encouraged, though strict reporting deadlines have not been imposed.

Another important update centres on the role of professional judgement. 

Administrators and controllers are now encouraged to use their discretion when determining whether additional inquiries are required to meet reporting obligations. 

This approach shifts the focus from rigid checklists to empowering professionals to assess each situation on its own merits.

“We expect external administrators and controllers to exercise their professional judgement in reporting misconduct to ASIC,” ASIC Deputy Chair Sarah Court said. 

ASIC is also reviewing its own processes for managing misconduct reports. 

This review, informed by feedback from the RG 16 consultation, aims to refine how reports are processed and acted upon. 

ASIC says it will monitor developments in law and case law to determine if further updates to RG 16 are required.

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