3.6 Registration is subject to the condition that any person with overall responsibility for the activities of a company`s debt contract is either a registered director or a registered agent (for more information, see Who can apply). 4.15 Cancellation shall not be made until the resignation has been accepted by the Inspector General. The administrator is notified and the AFSA website will be updated when this happens. All incomplete agreements that remain at the time of cancellation are transferred to AFSA`s official agent, unless other legal arrangements have been made for the transfer. A debt agreement is a legally binding agreement between you and your creditors. As an alternative to the insolvency application, you negotiate in a debt agreement to pay a percentage of your combined unsecured debts over a period of time (usually 3 to 5 years). Once you have voted for your creditors and approved them, repayments are made to your debt contract manager and not to your creditors. Once you have completed the agreed payments, your commitments are fulfilled and the debt is reflected.  The Debt Agreement Reform Act gives the Minister the power to create legal instruments, including instruments relating to the relationship between payment and income (new eligibility requirement for debt agreements) and the conditions for the management of the sector as a whole. Once these instruments are in place, these guidelines will be updated to reflect the relevant changes that will come into force. 3.43 For proposed debt agreements submitted after 27 June 2019, administrators must verify whether the debtor has committed potential breaches under the law. The directors are then required to notify the Inspector General or any other competent law enforcement authority of any evidence of an offence committed by the debtor under the law. 4.9 With regard to the Fit and Proper test, it is a new standard in which the Inspector General will be able to take action from 27 June 2019 to cancel the registration of a practitioner if a behaviour does not meet the expectations of the Community.
For individuals or companies that act as debt agreement managers in a position of trust, the expectation is to be of good standing and character and to act at all times with honesty and integrity held by the Inspector General on behalf of the wider community. Any evidence that this standard is not met results in some form of sanction, including measures to cancel the registration of a director. 3.48 The registered manager of a debt contract of an enterprise that is responsible for all activities of the debt contract must also acquire the qualifications. 3.14 The law requires that individuals and managers of corporate debt agreements have professional liability and loyalty insurance against debts that may result from the work of managing a debt contract. Administrators of individual debt contracts acting in their own name (or company name) and company directors must take out this insurance. Involuntary deletion of the registration of an individual or a company – 12 4.4 An enterprise must ensure that it employs at all times at least one qualified person who assumes overall responsibility for the activities of the debt contract of the enterprise, since this is a prerequisite for the registration of the enterprise. The basic aptitude test applies to those persons who need to be registered and, when they are no longer allowed to participate, they automatically lose their registration. . . .