New regulatory regime for insolvency practitioners - Commencement of the Insolvency, Restructuring and Dissolution Act (IRDA)

The Insolvency, Restructuring and Dissolution Act 2018 (IRDA) was passed by Parliament on 1 Oct 2018 and came into effect on 30 Jul 2020.  The IRDA consolidates the written laws relating to personal and corporate insolvency and debt restructuring into a single piece of legislation.  The IRDA also establishes a regulatory regime for insolvency practitioners (IPs).

With the commencement of the IRDA, the key changes in respect of corporate insolvency are as follows:

• Registration of individuals as Approved Liquidators (ALs) under the Companies Act, and Public Accountants under the Accountants Act, for the purpose of becoming Judicial Managers and/or Trustees in Bankruptcy (TIB) and not to perform audits of financial statements

• Filing of corporate insolvency documents with ACRA