Petrenko and Australian Financial Security Authority

This matter concerned an application by Ms Yulia Petrenko for review of a decision by a committee convened under the Bankruptcy Act 1966 (Cth) to refuse her registration as a trustee. The committee's decision was based primarily on its finding that Ms Petrenko had failed an oral examination, which the committee considered necessary to demonstrate her capacity to perform the duties of a registered trustee. The committee also raised concerns about the extent of her experience in personal insolvency administrations, although it ultimately did not consider this a sufficient reason for refusal.

The legal issues before the Tribunal were whether Ms Petrenko had demonstrated the requisite capacity to perform the functions and duties of a registered trustee, as evidenced by her performance in an oral examination, and whether she had satisfied the requirement of undertaking at least 4,000 hours of "relevant employment" in the five years preceding her application. The Tribunal was required to conduct a de novo review of the committee's decision.

The Tribunal considered the regulatory framework governing the registration of trustees, including the requirements for an applicant to possess specific qualifications, experience, knowledge, and abilities, as prescribed by the Insolvency Practice Schedule (Bankruptcy) and associated Rules. While the parties had agreed to the Tribunal administering a further oral examination, the presiding SM expressed reservations about the appropriateness of this approach. The Tribunal ultimately applied the current version of the Rules, noting that an older version, which was in force at the time of the committee's decision, did not offer a more favourable outcome for Ms Petrenko. The parties also agreed that Ms Petrenko had met the 4,000-hour employment requirement.