The Hayne Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry, highlighted the role of culture in influencing a broad range of conduct and behaviour, not only in an organisation, but also in an industry.
As part of its insolvency compliance program, the Australian Financial Security Authority (AFSA) worked with stakeholders to collectively agree on what good culture looks like. This was an opportunity to build a better understanding of the industry’s culture, especially where it can influence behaviours that can impact the integrity of, and public confidence in, the personal insolvency system.
AFSA released a survey on its online consultation website, AFSAsandpit, seeking feedback on a Statement of Principles, including principles which AFSA considered as exemplifying ‘good’ and ‘bad’ culture. Participants were asked for their opinion on what principles reflect good culture and insolvency scenarios that are indicative of good culture.
The Personal Insolvency Integrity Principles were developed in consultation with the Australian Restructuring Insolvency and Turnaround Association, the Personal Insolvency Professionals Association, the Association of Independent Insolvency Practitioners, Financial Counselling Australia and ASIC. The Principles were published in June 2020 and set a benchmark for industry best practice.