Chartered Accountants Australia and New Zealand (CAANZ) and the Restructuring Insolvency and Turnaround Association of New Zealand Incorporated (RITANZ) have agreed to introduce a self-regulatory regime to improve and enhance the ethical standards and professional competency of insolvency practitioners in New Zealand.
In accordance with the RITANZ Rules, members accepting regulated insolvency engagements after 30 November 2015 must be accredited.
Accreditation will also allow those making insolvency appointments, as well as the public, to differentiate between those who meet the accreditation criteria and those who don’t. CAANZ will maintain a register of Accredited Insolvency Practitioners listing their name and business contact details to facilitate this.
In order to retain accredited status, a practitioner is required to complete 120 hours of continuing professional development every three years, including 60 hours of verifiable CPD of which 30 must relate to verifiable insolvency training.
Individuals who are members of CAANZ who are granted accreditation status can use the designation “Chartered Accountants Australia and New Zealand Accredited Insolvency Practitioner (NZ)”.
Individuals who are members of RITANZ (but who are not also members of CAANZ) that are granted accreditation status can use the designation “RITANZ Insolvency Practitioner accredited by Chartered Accountants Australia and New Zealand”.
The duration of accreditation status continues as long as the practitioner continues to meet the requirements of accreditation. The practitioner will be required to confirm this annually.
Accredited Insolvency practitioners who are also New Zealand resident members of Chartered Accountants ANZ or non-member principals of a chartered accountancy practice continue to be subject to the NZICA Rules.
The NZICA Rules can be found here.
Unfortunately, this will not prevent other persons accepting insolvency appointments. Legislation considering the legal requirements for an insolvency practitioner remains at the draft stage and who knows when, or indeed if, it will ever become law.
In the meantime, all professional advisors should endeavour to ensure their clients are aware of the difference between a person who is an Accredited Insolvency Practitioner and one that is not.
If you have any further questions about our accredited insolvency practitioner status please email Simon at sdalton@gerryrea.co.nz.