ROOT
AFSA sounds dodgy adviser warning ahead of insolvency wave
The Australian Financial Security Authority has issued a warning around dodgy insolvency advisers ahead of an anticipated spike of bankruptcies.
AFSA sounds dodgy adviser warning ahead of insolvency wave
The Australian Financial Security Authority has issued a warning around dodgy insolvency advisers ahead of an anticipated spike of bankruptcies.
The personal insolvency regulator has now launched a public campaign to raise awareness on the prevalence of dodgy insolvency advisers and telltale signs for the public to look out for.
The Australian Financial Security Authority’s campaign comes as it is particularly concerned that those experiencing financial stress because of the economic impact of COVID-19 may be easy targets.
Some key signs that an adviser could be dubious include asking for a payment with a promise to get the person out of bankruptcy within a few months, or offering to organise a person’s affairs so their property will be protected in a bankruptcy.
Other telltale signs include recommending to include false, exaggerated or fake debts in a bankruptcy application, and advising that bankruptcy or a debt agreement will not affect the person’s credit rating.
“People who find themselves dealing with large debts for the first time as a result of COVID-19 may be tempted to turn to advisers who say they have a quick fix and later find out what they’ve done is illegal,” said ASFA deputy chief executive Gavin McCosker.
“It’s not always easy to spot a dodgy adviser, but if someone offers a solution to your financial problems that sounds too good to be true, it probably is.”
Mr McCosker said the regulator was determined to take action against such egregious practitioners to protect the industry and those experiencing financial trouble.
“Insolvency practitioners say dodgy advisers are their number one concern. If an adviser persuades someone to hide or dispose of their assets before they enter into a debt agreement or bankruptcy, everybody loses,” he said.
“When we discover or are notified about a dodgy adviser, we investigate and take action. Each year we inspect hundreds of personal insolvency administrations, and attend creditors’ meetings if dodgy activity is suspected.
“We rely on the industry and members of the community to report any activity that has the potential to take unfair advantage of people who use the personal insolvency system.”
AFSA’s warning comes as the Reserve Bank had earlier warned of an inevitable wave of business failures once temporary insolvency relief measures come to an end.
The government has since extended the relief measures to the end of the year and have also proposed a new insolvency regime that will allow businesses with liabilities of less than $1 million to continue trading while they develop a debt restructuring plan.
Earn
Best property investment strategies in Australia for 2024: An expert's perspective
As the Australian property market continues to evolve, investors are keenly looking for strategies that will yield the best returns in 2024. Read more
Earn
Innovative tax saving techniques for individuals and families
Tax time can be daunting for many Australians, but with some innovative planning and smart strategies, individuals and families can maximise their tax savings. Read more
Earn
Top firm says five factors are fuelling the Great Resignation
According to PwC, the Great Resignation is showing no signs of slowing down. Read more
Earn
Most voters believe JobSeeker rate should be lifted
Nearly half of Aussies said they would likely vote for a candidate who promised to lift the JobSeeker payment above the poverty line. Read more
Earn
Should Australia’s minimum wage be lifted?
With the cost of living being a central focus of this election campaign, both major parties are in disagreement over wage increases. Read more
Earn
New research claims over 300,000 Australian households have 'no financial safety net'
New research has been released. Read more
Earn
Are property investors pushing prices higher?
The average price for investment properties was found to be nearly $170,000 below the mean national property price. Read more
Earn
Almost a quarter of full-time workers are considering leaving their current job
Younger workers are the most likely to be thinking about quitting. Read more
Earn
Best property investment strategies in Australia for 2024: An expert's perspective
As the Australian property market continues to evolve, investors are keenly looking for strategies that will yield the best returns in 2024. Read more
Earn
Innovative tax saving techniques for individuals and families
Tax time can be daunting for many Australians, but with some innovative planning and smart strategies, individuals and families can maximise their tax savings. Read more
Earn
Top firm says five factors are fuelling the Great Resignation
According to PwC, the Great Resignation is showing no signs of slowing down. Read more
Earn
Most voters believe JobSeeker rate should be lifted
Nearly half of Aussies said they would likely vote for a candidate who promised to lift the JobSeeker payment above the poverty line. Read more
Earn
Should Australia’s minimum wage be lifted?
With the cost of living being a central focus of this election campaign, both major parties are in disagreement over wage increases. Read more
Earn
New research claims over 300,000 Australian households have 'no financial safety net'
New research has been released. Read more
Earn
Are property investors pushing prices higher?
The average price for investment properties was found to be nearly $170,000 below the mean national property price. Read more
Earn
Almost a quarter of full-time workers are considering leaving their current job
Younger workers are the most likely to be thinking about quitting. Read more