Overview of the Profession

Insolvency and reconstruction professionals (IRP) operate in a very difficult environment. They are only ever called in when a company or person is in financial trouble, and financial trouble always brings with it emotional pain and fear. Insolvency specialists operate under very tight time frames and pressures. When accepting an appointment, unlike other professional advisers, insolvency specialists take on a broad range of personal liabilities and financial risks.

The IRP takes on full responsibility and control for every aspect of the company. This includes:

  • preserving the rights of employees - wages, entitlements and health and safety;
  • preserving and maintaining assets;
  • controlling the books and records; and
  • being responsible for all aspect of the operations.

{For information on Trustees in Bankruptcy, click here.}

Insolvency professionals, when they accept an appointment:

  • enter into a fiduciary relationship which requires the highest level of trust and integrity;
  • become personally liable, not just financially, but also for example, under the various work place provisions for Occupational Health and Safety, Employment Conditions and Environmental Risks;
  • become responsible for investigating any breaches by the Directors and Officers of the company and reporting such breaches to ASIC;
  • have the rights to carry on litigation to recover monies and defend claims relating to the appointment.

Registration (licence) and Membership

All insolvency professionals are registered by Insolvency and Trustee Service Australia (ITSA) for trustees in bankruptcy, and by the Australian Securities & Investments Commission (ASIC) for receivers, administrators and liquidators of companies. While licensing is mandatory, being a member of the IPA is voluntary.

Professionals join the IPA because they:

  • support our commitment to high standards of professional conduct;
  • want to access our high quality training and education programs;
  • network with their peers.

Being a full member of the IPA is over and above the requirements for being registered. You can be registered without being a full member. You cannot be a full member without reaching high levels of academic and professional competence and agreeing to be bound by our codes of conduct.