3.PPS Client Case Record
The purpose of the Professional Practice Statements (PPSs) is to ensure Affiliates of the Affiliation for Business Resilience & Turnaround (ABRT), and all those who work for, represent or act on their behalf, maintain high professional standards at all times.
The PPSs set out guidance and suggested standards of practice for those engaged in the restructuring and turnaround of a business, and in the resolution of financial distress affecting a business or its stakeholders. They are intended to promote best-practice conduct that is aligned with prevailing statute, ethical frameworks and other relevant professional guidelines.
The PPSs describe required practice as a professional benchmark but are not statutory or legislative statements. They are not intended to prescribe a single mandatory approach or to operate as rigid rules. Affiliates are expected to exercise professional judgment, having regard to the specific circumstances, complexity and risk profile of each matter.
1 Details of the ABRT Affiliate and the Company Being Advised
1.1
The client case record (‘record’) should contain sufficient information to identify the parties, the advisory context and the basis upon which professional judgment has been exercised. This would ordinarily include:
1.1.1 The name and firm or business of the ABRT Affiliate (‘Affiliate’) acting as the lead professional, including their business address and any identifying number or reference issued by the Affiliation for Business Resilience and Turnaround.
1.1.2 The competent or authorising professional body under which the Affiliate is entitled to practise.
1.1.3 The full registration details of the company to which advice is being provided, including the Australian Company Number, date of incorporation and registered office address.
1.1.4 A brief description of the type of engagement, appointment or advisory role being undertaken.
2 Date File Opened
2.1
The record should note the date on which the client file or case record was opened, including where the file follows an initial triage or pre-engagement phase. This assists in evidencing the timing of advice relative to the development of financial distress indicators.
3 Referral Source
3.1
Where a matter has been referred to the Affiliate, the record should note the category of referral source, such as direct enquiry, accountant, tax adviser, lawyer, past or existing client or other professional source.
3.2
Specific identifying details of the referral source need not be recorded where confidentiality, sensitivity or professional courtesy considerations apply.
4 Formal Engagement Documentation
4.1
The record should include key engagement milestones to demonstrate when advisory responsibility commenced, including where relevant:
4.1.1 The date the formal engagement document and any initial invoice were issued to the company.
4.1.2 The date the engagement document was returned, signed and dated.
4.1.3 The date payment of the initial invoice was received.
This assists in distinguishing preliminary advice from formal advisory engagement, consistent with RG 217 commentary on the role of professional advisers.
5 Financial Distress Indicators and Advisory Context
5.1
Consistent with the approach outlined in ASIC Regulatory Guide 217, the record should summarise the key financial distress indicators observed or reported at the time advice was provided. This may include liquidity pressure, creditor arrears, enforcement activity, reporting deficiencies or other relevant factors.
5.2
The record should also note the Affiliate’s understanding of how these indicators informed the prioritisation of issues, the scope of advice and the urgency of recommended actions.
This section is not intended to be a checklist or determination of insolvency, but rather a record of professional context and judgment.
6 Use of External Advisers and Specialists
6.1
Where agents, solicitors, advisers or other specialists are engaged, the record should note:
• The identity and role of the adviser
• The reason for their involvement
• The timing of their engagement
• Any material decisions relating to their appointment
• Known or agreed cost arrangements where relevant
This aligns with RG 217 expectations that professional advisers act within competence and escalate or refer matters appropriately.
7 Letter of Engagement and Fees
7.1
The record should include the date the letter of engagement was issued to the company.
7.2
The record should include the date the letter of engagement was returned, duly signed and retained.
7.3
The record should note the basis upon which fees were agreed and charged, including factors relevant to professional judgment such as:
7.3.1 The complexity of the matter and the presence of multiple financial distress indicators.
7.3.2 The level of responsibility assumed by the Affiliate and their team.
7.3.3 The nature and intensity of advisory involvement.
7.3.4 The scale and risk profile of the company’s assets and liabilities.
7.4
The record should include details of fees charged and payments received, including relevant dates.
8 Progress of the Matter
8.1
The record should provide a chronological summary of key events, advice points and review milestones, which may include:
• Initial client meetings and follow-up discussions
• Situation and analysis reporting
• Safe harbour advice and assessment dates where relevant
• Review or expiry dates for key assessments
• Warning or advisory correspondence issued to directors
• Agreed milestones and progress reviews
This assists in evidencing that advice evolved as circumstances changed, consistent with RG 217’s emphasis on dynamic assessment of financial position.
9 Critical Case Matters
9.1
The record should note significant issues, challenges or developments that arose during the engagement, recorded in date order with sufficient detail to explain their nature and potential impact on the company and the advice being provided.
10 Termination of Engagement and Complaints
10.1
Where the Affiliate terminates or resigns from an engagement, the record should note whether a formal notice was issued and the general basis for termination, which may include:
• Ongoing lack of cooperation
• Failure to provide accurate or timely information
• Discovery of conduct that materially undermines the advisory relationship
10.2
Any complaints received should be recorded and addressed in accordance with PPS.9 – Dealing With Complaints.
