ASIC has released a consultation paper on insurance requirements for liquidators, seeking feedback on its proposals about new insurance requirements for registered liquidators.

The new insurance requirements were introduced last year in the Corporations Amendment (Insolvency) Act, requiring liquidators to have adequate and appropriate professional indemnity (PI) and fidelity insurance. They come into force for all liquidators from July 1.

The new requirements replace the previous rule requiring liquidators to lodge and maintain a bond with ASIC or to hold both PI cover and a public practice certificate from one of the professional accounting bodies.

Acting Executive Director of Regulation, John Price, says ASIC encourages insolvency practitioners, creditors and insurers, their professional advisers, and others with an interest in this area to read the paper and provide feedback.