Liquidator misconduct falls as ASIC looks wider
Reports of misconduct among registered liquidators fell in 2013 despite the Australian Securities and Investments Commission (ASIC) casting a wider net in its reviews of the sector.
In its annual report on the supervision of registered liquidators, ASIC said it conducted more than 250 reviews in 2013, up from about 200 in 2012, with reports of alleged misconduct falling from 539 in 2011 to 446 in 2013.
ASIC also stated that more than 70 per cent of all independence declarations reviewed in 2013 were adequate, compared to less than 50 per cent in 2012. Liquidators must make full disclosure to creditors about their independence.
Despite the results ASIC stated that it took enforcement action on a number of occasions and that 61 per cent of reports of alleged misconduct resulted in educative outcomes.
ASIC cancelled or prohibited the registration of seven registered liquidators as part of its formal investigations or enforcement actions relating to 19 registered liquidators.
ASIC Commissioner John Price said the regulator would take strong action against registered liquidators who did not fulfil their responsibilities and obligations and had done so in the past year as outlined in the report.
The regulator would examine the unregulated, pre-insolvency advice market, including the potential impact on registered liquidators' independence, especially through referrals to the registered liquidators by pre-insolvency advisers during 2014.
AUTHOR
Jason Spits
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