Bankruptcy (Registered Debt Agreement Administrator Conditions) Determination 2020

The instrument rests on a small set of interlocking concepts that determine who must do what, and when.

• Registration condition: The Determination is an exercise of the Minister’s power to attach conditions to registration under subsection 186F(4) of the Bankruptcy Act 1966 (s 3). The conditions in section 4 are expressly described as those to which registration is subject under subsection 186F(3) (s 4(1)). The effect is regulatory: registration as a debt agreement administrator is made conditional on compliance with the measures set out.

• Advertising and promotion controls: The Determination defines minimum content and accuracy standards for any advertising or promotion of an administrator’s services in any form or medium (s 4(2)). The required content is the administrator’s full name and registration number; the required quality standard is that the material not be false, misleading or deceptive. The phrase "in any form or medium" casts the rule widely over digital and traditional channels (s 4(2)).

• Pre‑proposal debtor disclosure: Two disclosure steps are prescribed when the administrator is the person referenced in paragraph 185C(2)(c) of the Bankruptcy Act. First, the administrator must give a set of information orally or in writing at least five business days before the debtor signs a debt agreement proposal (s 4(3)). Second, after complying with that first step and at least one business day before signing, the administrator must give a further set of information in writing (s 4(4)). Both sets must use a form approved by the Inspector‑General and published on AFSA’s website (ss 4(3), 4(4)). The two-step structure creates both timing and format constraints.

• Content of disclosure: The instrument lists the specific items that must be disclosed. The first set (s 4(3)) includes how a debt agreement operates, consequences of entering into one, alternatives, free counselling, statement on the act of bankruptcy for giving the Official Receiver a proposal, consequences of failing to make payments, estimates of remuneration for preparing and administering the agreement, estimate of the Part 3 Estate Charges Act charge, the fee that may be payable under an instrument under s 316 of the Bankruptcy Act for giving the Official Receiver the proposal, and information about the Inspector‑General’s role. The second set (s 4(4)) repeats several elements in written form (including remuneration, charges, s 316 fee and complaint rights) and adds details on dispute resolution processes and complaint channels to the Inspector‑General (s 4(4)(i)-(j)).

• Objectivity and recordkeeping: Administrators must ensure information given is factual and objective (s 4(5)). They must make a contemporaneous record of disclosures within two business days (s 4(6)), and, if the proposal produces an administered debt agreement, retain the record for six years from the day the debt agreement was made (s 4(7)). The retention duty is conditional on the administrator actually administering the resulting debt agreement.

• External complaint mechanism membership: Registered administrators must be members of AFCA (s 4(8)). There is a narrow sectoral exception where a company is the registered administrator and an individual manager who takes overall responsibility for the company’s debt agreement activities is registered; in that situation the AFCA membership requirement in subsection (8) does not apply to the individual in their capacity as manager (s 4(9)).

• Administrative approval and publication: The required disclosure forms must be approved by the Inspector‑General and published on the AFSA website (ss 4(3), 4(4)). The instrument therefore routes substantive content to forms controlled administratively rather than setting exhaustive textual requirements in the Determination itself.

These concepts combine to structure pre‑contractual behaviour (timed disclosures, factual standards, recordkeeping) and ongoing regulatory alignment (AFCA membership, adherence to approved forms). The Determination explicitly cross‑references other statutory materials (Bankruptcy Act 1966 provisions and the Bankruptcy (Estate Charges) Act 1997), embedding the conditions within the broader bankruptcy administrative framework (ss 4(3)(f)-(g), 4(4)(e)-(f)).

The instrument applies to all registered debt agreement administrators, both individuals and companies, as the text explicitly states that the conditions apply to all persons, including companies (s 4(1) and accompanying note). Practically, the affected parties and stakeholders are as follows.

• Registered debt agreement administrators: The primary duty‑holders are persons registered as debt agreement administrators under the Bankruptcy Act 1966. The instrument conditions registration itself, so the obligations apply as a matter of registration status (s 4(1)). The advertising, disclosure, recordkeeping and AFCA membership requirements bind these registrants.

• Companies that are registered administrators: Companies are specifically included (s 4(1)). The instrument also acknowledges (in the embedded note) that the Minister can determine additional conditions that only apply to companies under subsection 186G(2B) of the Bankruptcy Act. The Determination also contains a company‑specific interaction in subsection (9): if a company is registered and an individual manager who takes overall responsibility for the company's debt agreement activities is a registered administrator, the AFCA membership requirement in subsection (8) does not apply to that individual in the manager capacity (s 4(9)).

• Individual administrators: Individuals who are registered administrators are directly affected by the advertising, disclosure, recordkeeping duties and AFCA membership requirement unless the narrow managerial exception in s 4(9) applies. The instrument contemplates individuals acting in a managerial capacity for a registered company and provides an exemption in that specific configuration (s 4(9)).

• Debtors and prospective debtors: While the Determination imposes obligations on administrators, the practical effect is to impose pre‑contractual information flows and dispute pathways for debtors or prospective debtors. The required information items (e.g. how a debt agreement operates, alternatives, counselling, estimates of costs and fees and the effect of failing to make payments) are directly about debtor choice and expectations (s 4(3), s 4(4)). The requirement that information be factual and objective (s 4(5)) and that records be created and retained (ss 4(6)-(7)) affects the evidentiary posture of future disputes.

• Inspector‑General and AFSA: The Inspector‑General has an administrative role in approving the forms to be used for the required disclosures; those forms must be published on AFSA’s website (ss 4(3), 4(4)). AFSA is the publication and likely operational hub for the approved forms. The Determination also references the role of the Inspector‑General as an item to be disclosed to debtors (ss 4(3)(i), 4(4)(h)).

• Australian Financial Complaints Authority (AFCA): The Determination requires administrators to be AFCA members (s 4(8)), thereby channeling consumer complaints into AFCA’s external dispute resolution framework. The membership requirement directly imports an external oversight mechanism into the sector.

• Official Receiver and fee regimes: The Determination requires administrators to disclose that it is an act of bankruptcy for a debtor to give the Official Receiver a debt agreement proposal and to disclose amounts that may be payable under instruments made under s 316 for giving the Official Receiver the proposal (s 4(3)(d), (h); s 4(4)(d), (g)). This ties disclosure obligations to existing institutions and fee mechanisms referenced in the Bankruptcy Act and related instruments.

Non‑affected parties: The instrument does not purport to regulate creditors directly, nor does it set out sanctions or alter the substantive rights of creditors or debtors under the Bankruptcy Act; its text confines obligations to registered administrators and to specified administrative actors (Inspector‑General, AFSA, AFCA). The instrument also leaves unspecified any additional registration or conduct conditions that may arise under other powers in the Bankruptcy Act (for example subsection 186G(2B) is noted as allowing additional company‑only conditions), so further regulation may operate separately.

The instrument creates a set of affirmative duties for registered debt agreement administrators and embeds a few definitional and procedural constraints. It does not create new rights for third parties in express terms. The key duties and the limited rights implied by the instrument are as follows, with section references.

Advertising duties (s 4(2))

• Duty to include the administrator’s full name and registration number in any advertising or promotion of the administrator’s services, in any form or medium (s 4(2)(a)).
• Duty not to produce advertising that is false, misleading or deceptive (s 4(2)(b)).

Pre‑proposal disclosure duties (ss 4(3)-(5))

• Conditional timing: Where the administrator is the person specified under paragraph 185C(2)(c) of the Bankruptcy Act, the administrator must give specified information at least five business days before a debtor signs a debt agreement proposal, either orally or in writing, and using a form approved by the Inspector‑General and published on AFSA’s website (s 4(3)).
• Additional written disclosure: After complying with s 4(3) and at least one business day before the debtor signs, the administrator must give further specified information in writing using the Inspector‑General approved form (s 4(4)).
• Content mandates: The information items required in the two disclosure steps are enumerated and include operational explanations, alternatives, free counselling, a statement about the Official Receiver and acts of bankruptcy, consequences of failure to pay under a debt agreement, estimates of administrator remuneration for preparing and administering the agreement, estimates of the Part 3 charge under the Bankruptcy (Estate Charges) Act 1997, the amount of any fee under an instrument made under s 316 of the Bankruptcy Act 1966 for giving the Official Receiver the proposal, information about the role of the Inspector‑General, details of dispute resolution processes and complaint avenues to the Inspector‑General (ss 4(3)(a)-(i); 4(4)(a)-(j)).
• Objectivity standard: Any information provided under ss 4(3) or 4(4) must be factual and objective (s 4(5)).

Recordkeeping duties (ss 4(6)-(7))

• Contemporaneous record: The administrator must make a record of the information given to a debtor under ss 4(3) or 4(4) before the end of the second business day after the day the information was given (s 4(6)).
• Retention conditional on administration: If the administrator makes the record and then administers a debt agreement resulting from the acceptance of the debt agreement proposal, the administrator must retain the record until the end of six years beginning on the day the debt agreement was made (s 4(7)). The retention obligation is therefore conditional on the administrator administering the resulting agreement.

AFCA membership (ss 4(8)-(9))

• Duty to be a member of AFCA: Registered administrators must be AFCA members (s 4(8)).
• Manager exception: If a company is the registered administrator and an individual manager who takes overall responsibility for the company’s debt agreement activities is a registered administrator, subsection (8) does not apply to that individual in the capacity as manager (s 4(9)). This means the company must be a member but the individual manager is not required to be a member by virtue of their role with the company.

Administrative form and publication duties (ss 4(3), 4(4))

• Duty to use forms approved by the Inspector‑General and published on AFSA’s website for both the five‑day and one‑day disclosure statements (ss 4(3), 4(4)). This delegates detail to administrative authorities and centralises published versions on AFSA’s site.

Rights and procedural implications implied by the instrument

• Right to rely on approved forms: Administrators are required to use Inspector‑General approved forms; this implies administrative clarity and a single point of publishing (AFSA website). The instrument does not provide an express private right of action based on the Determination; any such rights would come from other statutory provisions or external dispute mechanisms such as AFCA membership (s 4(8)).
• Access to AFCA complaints process: The AFCA membership requirement creates an external dispute resolution pathway available to clients of registered administrators. The instrument requires administrators to disclose the availability of AFCA membership indirectly by requiring details of dispute resolution and complaint channels (s 4(4)(i)-(j)), and requires membership itself (s 4(8)).

Limitations and omissions in duties

• No penalty or enforcement text: The Determination prescribes conditions but does not itself set out sanctions for non‑compliance. It operates by conditioning registration under the Bankruptcy Act; any enforcement or consequences for breach are not specified in this instrument (see s 3 which states authority only).
• Conditional obligations: The retention duty in s 4(7) applies only if the administrator both makes the record and administers the resulting debt agreement. If a proposal is not accepted or the administrator does not administer the resulting agreement, retention under s 4(7) is not mandated by this Determination.

In short, the Determination imposes a compliance framework for pre‑contractual disclosure, advertising standards, contemporaneous recordkeeping and minimum external dispute resolution membership, with administrative control over disclosure form content and publication.

The Determination itself does not prescribe penalties or a detailed enforcement regime. Its legal operation is to set conditions of registration under subsection 186F(4) of the Bankruptcy Act 1966 (s 3). That means non‑compliance with the Determination could have consequences through the registration regime established in the Bankruptcy Act; however the Determination text does not specify what those consequences are, nor does it set out administrative fines, civil liabilities or criminal offences within the instrument.

Relevant features from the Determination that influence enforcement and oversight:

• Registration‑condition mechanism: The Determination is expressly made under s 186F(4) and sets out the conditions to which a person’s registration as a debt agreement administrator is subject under subsection 186F(3) (s 3; s 4(1)). As a registration condition, enforcement in practice is likely to be routed through the statutory registration framework of the Bankruptcy Act, but the instrument itself does not set out the procedural steps for removing, suspending, or otherwise sanctioning a registrant for breach.

• Inspector‑General’s role: The Inspector‑General is given an administrative role in approving the disclosure forms to be used by administrators and those forms must be published on AFSA’s website (ss 4(3), 4(4)). This gives the Inspector‑General a gatekeeping and quality control role over the content of required disclosures. The Determination also requires administrators to disclose information about the role of the Inspector‑General to prospective debtors (s 4(3)(i), 4(4)(h)), positioning that office as part of the oversight architecture. The instrument, however, does not delegate enforcement powers to the Inspector‑General in its text.

• AFCA membership: The requirement that administrators be members of the Australian Financial Complaints Authority (s 4(8)) creates an external dispute resolution pathway through which debtor complaints can be channelled. AFCA has its own rules and dispute resolution processes that can result in recommendations, determinations and remediation. The Determination does not set AFCA’s powers or remedies, but it imports AFCA as an institutional enforcement avenue by mandating membership.

• Recordkeeping obligations: The Determination requires a contemporaneous record of the information given to a debtor and retention of that record for six years if the debtor’s proposal leads to an administered debt agreement (ss 4(6)-(7)). These recordkeeping elements facilitate later audits, complaints handling and investigations by authorities or AFCA. The Determination does not itself attach penalties for failure to create or retain records.

What the Determination does not do (as per its text)

• It does not create statutory offences, pecuniary penalties, or administrative sanctioning powers within its own provisions.
• It does not describe the process by which the registration conditions will be monitored, audited, or enforced.
• It does not explain how breaches of the conditions will affect registration status; any such processes are left to the Bankruptcy Act and its administrative instruments that are not included within this Determination.

Practical implication, drawn solely from the instrument

• Enforcement will depend on the interaction between these registration conditions and the broader Bankruptcy Act machinery, and the administrative and oversight capacities of the Inspector‑General, AFSA and AFCA. The Determination provides required behaviours and documentation that facilitate detection and adjudication of non‑compliance, but it leaves the mechanics and consequences of enforcement to the rest of the statutory and administrative framework.

The Determination is designed to operate within the statutory architecture of the Bankruptcy Act 1966 and related instruments. The text explicitly cross‑references several provisions and other legislation; these cross‑references are the limits of what this instrument itself addresses. From the Determination text, the following interactions are apparent.

Direct statutory basis and registration framework

• The instrument is made under subsection 186F(4) of the Bankruptcy Act 1966 and sets conditions for registration under subsection 186F(3) (s 3; s 4(1)). This places the Determination as an implementing instrument that sits below the Bankruptcy Act, attaching conditions to registration rather than changing substantive legal rights in the Act itself.

References to other Bankruptcy Act provisions

• The instrument repeatedly references paragraph 185C(2)(c) of the Bankruptcy Act 1966 as a trigger condition for the disclosure obligations in s 4(3). The Determination therefore depends on the definitions, roles and relationships established in s 185C(2)(c) of the Act to determine when its five‑business‑day disclosure duty applies. The content of paragraph 185C(2)(c) itself is not reproduced in the Determination; the instrument relies on that existing statutory provision.

• The instrument requires disclosure of the amount of any fee that may be payable under an instrument made under section 316 of the Bankruptcy Act 1966 for giving the Official Receiver the proposal (s 4(3)(h); s 4(4)(g)). That brings in any separate instrument setting such fees under s 316, and requires administrators to disclose the applicable amount.

Interaction with the Bankruptcy (Estate Charges) Act 1997

• The Determination requires administrators to provide an estimate of the amount of the charge imposed by Part 3 of the Bankruptcy (Estate Charges) Act 1997 that would be payable by the administrator in administering any debt agreement resulting from the acceptance of the proposal (s 4(3)(g); s 4(4)(f)). This means administrators must be aware of and apply the charge rules in the Estate Charges Act when making the required disclosures. The Determination therefore links administrative disclosure obligations to the charge regime set out in that separate Act.

Inspector‑General and AFSA administrative interface

• The Determination requires the use of forms approved by the Inspector‑General and published on AFSA’s website for the two disclosure steps (ss 4(3), 4(4)). This establishes a procedural interaction among the Inspector‑General, AFSA and the administrator: the Inspector‑General approves the forms, AFSA publishes them, and administrators must use them. The Determination thereby delegates detail to administrative rulemaking and central publication.

AFCA external dispute resolution architecture

• By mandating membership of the Australian Financial Complaints Authority for administrators (s 4(8)), the Determination imports AFCA’s dispute resolution processes into the regulatory environment for debt agreement administration. Administrators must accept AFCA’s jurisdiction under its membership arrangements, and debtors gain access to AFCA’s complaints procedures. The Determination does not define AFCA’s powers; it only requires administrators to be members.

Limits and placeholders for further regulation

• The instrument notes that subsection 186G(2B) of the Bankruptcy Act 1966 allows the Minister to determine additional conditions that only apply to companies (note to s 4(1)). That means the Determination’s company‑specific content is not exhaustive; further company‑only conditions could be prescribed under that separate power in the Act.

Matters not altered by the Determination

• The Determination does not amend the Bankruptcy Act or the Bankruptcy (Estate Charges) Act 1997; it requires administrators to disclose amounts and information that arise under those Acts and instruments made under them. It does not change the substantive operation of those Acts.

In sum, the Determination functions as a subordinate instrument that conditions registration, channels administrators into AFCA, requires interaction with the Estate Charges Act and s 316 fee instruments for disclosure purposes, and delegates form content control to the Inspector‑General and AFSA. It therefore depends on, and operationally links together, the Bankruptcy Act registration framework, the Estate Charges Act charging rules, Inspector‑General/AFSA administrative capacities, and AFCA’s external dispute resolution procedures.

The instrument contains a commencement table and an explanatory Note about that table. The information contained in the included text shows the original making and commencement but contains no subsequent amendment entries. The explicit items are:

• Instrument name: Bankruptcy (Registered Debt Agreement Administrator Conditions) Determination 2020 (s 1).

• Commencement: The instrument’s entirety commenced on 1 January 2021. This appears in the commencement table where column 1 lists "The whole of this instrument" and column 2 records "1 January 2021" with an associated note (s 2 and the commencement table).

• Note about the table: The instrument includes a formal note that the commencement table relates only to the provisions of the instrument as originally made and that it will not be amended to deal with later amendments (s 2 note). The instrument also notes that information in column 3 is not part of the instrument and may be edited in published versions (s 2(2)).

• No further amendments shown: The text provided contains no subsequent amendment schedule, sunset provision, or repeal entry. There is no legislative history appended in this instrument text (for example, no schedules of amendment, no series of amending instruments and no statement of retrospective effect).

• Potential future conditions for companies: While not an amendment, the instrument’s embedded note makes explicit reference to subsection 186G(2B) of the Bankruptcy Act 1966 as a separate statutory power that "also allows the Minister to determine additional conditions that only apply to such companies" (note to s 4(1)). This signals an existing mechanism in primary legislation by which the Minister can add or alter company‑specific conditions without amending this Determination. The Determination itself does not exercise that power beyond noting it.

From the instrument text alone, the amendment history is therefore limited to the original making and commencement on 1 January 2021, and there is no record in the instrument of any subsequent amendments or repeals.

The Determination text does not record any litigation history. There are no cases, judicial decisions, or references to proceedings contained within the instrument. The text names no judicial authority or litigation outcome.

Because the Determination functions as subordinate legislation and sets registration conditions under the Bankruptcy Act 1966, any litigation or judicial review matters that arise from its application would appear in external jurisprudence and would not be recorded in this instrument. The instrument itself contains no annex, footnote or schedule that records legal challenges, nor does it state that it has been the subject of challenge. Therefore, on the basis of the instrument’s text alone, there is no litigation history to report.

The text contains a number of drafting details and conditional requirements that create practical traps for administrators or their compliance teams. The following points are grounded in the instrument’s wording and identify places where non‑compliance or misunderstanding is likely.

Timing and sequence of disclosures (ss 4(3)-(4))

• Two distinct timing thresholds apply: the first disclosure under s 4(3) must be given at least five business days before the debtor signs the debt agreement proposal; the second under s 4(4) must be given at least one business day before signing and only after the first requirement has been complied with. Administrators must therefore plan a sequence of interactions. Failure to observe the five‑business‑day window cannot be cured by giving the one‑day written statement; both are required in sequence where the trigger in s 4(3) applies.

• The five‑business‑day requirement applies only in the specific circumstance where "the person specified under paragraph 185C(2)(c) of the Bankruptcy Act 1966 is the administrator" (s 4(3)). Administrators need to understand when that paragraph applies; the Determination does not elaborate on paragraph 185C(2)(c), so registrants must refer to the Bankruptcy Act to identify the trigger. The Determination at least makes the dependency explicit.

Form approval and single‑source publication (ss 4(3), 4(4))

• Both disclosure steps must use forms "approved by the Inspector‑General and published on the Australian Financial Security Authority’s website." The forms are not included in the Determination text, so failure to use the Inspector‑General‑approved and AFSA‑published forms will breach the condition even if the substantive content provided was correct. Administrators must therefore keep a current link to AFSA’s published forms and any updates.

Oral versus written communication (s 4(3) vs s 4(4))

• The first disclosure may be given orally or in writing using the approved form (s 4(3)). The second disclosure must be in writing using the approved form (s 4(4)). Practitioners must take care that oral communications are still recorded and that the written form is subsequently delivered at least one business day before signing.

Content specificity and quantification (ss 4(3)(f)-(g), 4(4)(e)-(f))

• Administrators must provide estimates of remuneration for both preparing the proposal and administering the debt agreement, estimates of the Part 3 charge under the Bankruptcy (Estate Charges) Act 1997, and the amount of the fee that may be payable under an instrument made under s 316 of the Bankruptcy Act (ss 4(3)(f)-(g), 4(3)(h); ss 4(4)(e)-(g)). These are specific quantitative disclosures, not merely qualitative descriptions. Administrators need internal processes to calculate and justify these estimates and to ensure they refer to current fee and charge rules under the other Acts and instruments referenced.

Record timing and retention conditions (ss 4(6)-(7))

• Administrators must make a record of the information given before the end of the second business day after giving the information (s 4(6)). That is a tight, objectively measured window that requires administrative systems to track the date the information was given and ensure record creation within two business days.

• The retention obligation in s 4(7) is conditional: it applies only if the administrator both made the record and then administers a debt agreement resulting from the acceptance of the proposal. If a proposal is not accepted, the six‑year retention trigger does not apply under this subsection. Administrators should nonetheless consider retention policy more broadly for business and compliance reasons, but the statutory retention duty in s 4(7) is narrower.

AFCA membership technicality (ss 4(8)-(9))

• The instrument requires administrators to be AFCA members (s 4(8)), but exempts an individual only in the precise circumstance where a company is the registered administrator and an individual manager who takes overall responsibility for the company’s debt agreement activities is a registered administrator; in that scenario subsection (8) does not apply to the individual in that managerial capacity (s 4(9)). The narrowness of the exemption means that companies remain obliged to be AFCA members, and individuals remain obliged unless they meet this specific configuration. Misunderstanding the limited scope of the exception could lead to non‑compliance.

Broad advertising sweep and accuracy standard (s 4(2))

• The advertising rule applies "in any form or medium" and requires the inclusion of full name and registration number as well as a prohibition on false, misleading or deceptive content (s 4(2)). The breadth of "any form or medium" captures websites, social media, printed material, and third‑party marketing, and administrators should therefore ensure that all channels,including affiliates or third‑party promoters,comply.

Inspector‑General role and reliance on approved forms (ss 4(3), 4(4))

• The Determination delegates substantive detail to forms approved by the Inspector‑General. That means administrators must monitor the Inspector‑General and AFSA for form changes; failure to use an updated approved form will be a breach even if the administrator’s own disclosure content remains accurate.

Factual and objective standard (s 4(5))

• The instrument sets an express standard that all information given under ss 4(3) or 4(4) must be factual and objective (s 4(5)). That is a non‑technical but significant compliance threshold. Administrators must be able to substantiate assertions and estimates used in disclosures.

No express penalties in the Determination

• The instrument does not state penalties; compliance risk therefore interfaces with the registration regime of the Bankruptcy Act and external mechanisms (Inspector‑General oversight and AFCA). Administrators cannot rely on the Determination to detail consequences.

In short, the technical "gotchas" are timing and sequencing of disclosures, the mandatory use of approved published forms, quantification and sourcing for fee/charge estimates, tight record creation windows, the conditional nature of retention, and the narrow scope of the AFCA membership exception. Each of these is directly traceable to the relevant subsections cited above.

Compliance requires operational changes across marketing, client intake, disclosure, recordkeeping, and dispute resolution membership. The following checklist and practical steps are grounded in the Determination’s text and indicate observable, documentable measures an administrator should take to meet the conditions (references to provisions provided).

1. Registration and governance

• Confirm registration status and align internal policies so that registration remains subject to these conditions (s 4(1)). Implement a compliance owner responsible for maintaining adherence to the Determination.

2. Advertising and promotion controls (s 4(2))

• Audit all advertising channels (websites, social media, printed materials, third‑party referral pages) to ensure every piece of promotional material contains the administrator’s full name and registration number (s 4(2)(a)).
• Review claims for accuracy and remove or correct any statement that could be false, misleading or deceptive; establish a clearance process for future advertising to maintain this standard (s 4(2)(b)).

3. Approved form use and Inspector‑General liaison (ss 4(3), 4(4))

• Identify and download the Inspector‑General approved disclosure forms from AFSA’s website. Assign responsibility for monitoring AFSA and Inspector‑General publications for updates to the forms (ss 4(3), 4(4)).
• Integrate the approved forms into client‑facing workflows and case management systems so forms are used in the required timing windows.

4. Disclosure timing, content and format (ss 4(3)-(5))

• Map intake processes to the Determination’s timing: when the administrator is the person specified under paragraph 185C(2)(c), ensure the first disclosure (the items listed at s 4(3)) is provided orally or in writing using the approved form at least five business days before the debtor signs the proposal.
• Ensure the second disclosure (s 4(4)) is provided in writing using the approved form after the first disclosure has been made and at least one business day before signing.
• Prepare templates and calculation tools to provide the required estimates: remuneration for preparing the proposal and administering the agreement (ss 4(3)(f), 4(4)(e)); the Part 3 charge under the Bankruptcy (Estate Charges) Act 1997 (ss 4(3)(g), 4(4)(f)); and any s 316‑instrument fee for giving the Official Receiver the proposal (ss 4(3)(h), 4(4)(g)).
• Ensure the disclosure includes: how a debt agreement operates; alternatives to entering a debt agreement; free financial counselling services; consequences of failing to make required payments; the Inspector‑General’s role; internal and external dispute resolution processes; and complaint pathways to the Inspector‑General (ss 4(3)(a)-(i); 4(4)(a)-(j)).
• Verify that all disclosures are factual and objective. Maintain written support for estimates and statements so they can be substantiated (s 4(5)).

5. Record creation and retention (ss 4(6)-(7))

• Establish a procedure to create an evidence record of all disclosures given under ss 4(3) and 4(4) and to store that record within two business days of giving the information (s 4(6)). Dates and delivery method must be logged.
• If the administrator proceeds to administer a debt agreement resulting from an accepted proposal, retain the relevant disclosure record until the end of six years beginning on the day the debt agreement was made (s 4(7)). Build this retention period into document management systems and deletion policies.

6. AFCA membership and complaints handling (ss 4(8)-(9))

• Confirm AFCA membership for the registrant (s 4(8)). If the registered administrator is a company with an individual manager who is also a registered administrator, document the managerial relationship and the application of the specific exception in s 4(9).
• Incorporate AFCA complaints procedures into internal complaints and dispute resolution processes and provide clear instructions in disclosures about external complaint options (s 4(4)(i)-(j)).

7. Training and quality control

• Train staff and managers on the two‑step disclosure timing, the need to use Inspector‑General approved forms, and the requirement that all communications be factual and objective (ss 4(3)-(5)).
• Implement a pre‑signing compliance checklist that confirms: five‑day disclosure given where required, one‑day written disclosure given, approved forms used, records created and saved, remuneration and charge estimates attached, AFCA membership current.

8. Liaison with Inspector‑General and AFSA

• Maintain a channel for updates from the Inspector‑General and AFSA, including subscribing to AFSA updates or monitoring AFSA’s publications page for revised approved forms (ss 4(3), 4(4)).

9. Audit and documentation

• Schedule periodic internal audits of compliance with the Determination and maintain an audit trail showing how disclosures were calculated and delivered. Ensure audit trails include date/time stamps and copies of the approved forms used.

10. Commercial and operational modelling

• Incorporate the requirement to estimate remuneration and charges into fee schedules and client quotes. Where applicable, conservatively document how estimates are derived so that they can be shown to be factual and objective if challenged (ss 4(3)(f)-(g); 4(4)(e)-(f)).

11. Contingency for non‑acceptance of proposal

• Note that record retention obligations in s 4(7) apply only if the administrator administers the debt agreement resulting from an accepted proposal. Put policies in place for retention of records even where proposals are not accepted if business practice or other laws require longer retention periods.

12. Documentation for inspectors and regulators

• Keep a central compliance file for each client matter that includes the date disclosures were given, the forms used, calculations underpinning estimates, evidence of AFCA membership, and the record creation proof required by s 4(6).

Following the above steps addresses the specific clauses in the Determination: advertising requirements (s 4(2)); the two‑step disclosure obligations and approved form use (ss 4(3)-(4)); factuality standard (s 4(5)); record creation and conditional six‑year retention (ss 4(6)-(7)); AFCA membership and the narrow managerial exception (ss 4(8)-(9)); and the administrative liaison obligations with the Inspector‑General and AFSA (ss 4(3), 4(4)).