Calls for further investigation as Harts’ groups sold
The liquidators of Harts Australia have called for further investigations into the group following news it may have continued trading well after the group was deemed insolvent.
Deloitte Touche Tohmatsu's John Greig, the liquidator appointed to the Harts group, says he and business partner Robert Duff presented a report to the Federal Court in October which says the group may have been insolvent before the official liquidation hearing.
Greig says, he and Duff were asked by the Federal Court judge if they believed Harts was insolvent at the time of the hearing. Greig says he told the court he believed the Harts group had seemed to be insolvent for sometime.
As a result, it is now Greig’s belief that another investigation needs to be made into the Harts group, and its directors, including managing director Steve Hart.
“There needs to be another significant investigation carried out. The issues are pretty complex, but there were certain transactions that the processes of the liquidation highlighted the need for further investigation,” Greig says.
As well as voicing his opinion on a further investigation, Greig is also trying to keep up with the buying and selling of the Harts subsidiaries.
He says interest in the subsidiaries of Harts has hotted up, with the majority of the group’s associated accounting practices being sold, with many more close to sign-off.
Greig says the ANZ banking group appointed Sims Lockwood, a specialist chartered accounting and business advisory firm, to sell off the majority of the accounting practices to One to One Financial Solutions.
He says, as well as the majority of the accounting groups, there are many of the former 26 subsidiaries up for sale or have been sold.
“Sims Lockwood have sold the majority of the accounting practices to One to One Financial Solutions. Another division that has been sold is the insurance broking business, which has been sold off to Oamps, the insurance broker,” he says.
Greig, who only commented on a few of the groups, says The First Mortgage Corporation could very well be the next group sold.
“It’s not sold today, but the negotiations for the group are in a pretty advanced stage,” Greig says.
AUTHOR
Recommended for you
As the government announces a public inquiry into the collapse of Dixon Advisory, risk adviser Richard Silberman has detailed the three areas that typically lead to an AFSL's collapse.
With a growing number of advisers now running their own business, they need to pivot their career identity to being a business owner rather than just as a financial adviser if they want to futureproof their business.
Zenith Investment Partners has launched a range of new managed account portfolios over the past quarter, including on Insignia Financial’s Expand platform.
The financial services technology firm has officially launched its digital advice and education solution for superannuation funds and other industry players.
