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ASIC forces liquidator to repay $24K

ASIC has accepted an enforceable undertaking (EU) from a registered liquidator that requires, among other things, the liquidator to repay $24,200 in remuneration not properly approved.

News Staff Reporter 15 April 2015
— 1 minute read

The EU was received from Ross Stephen Thomson, trading as Red2Black Accounting Solutions in Perth.

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In a statement, ASIC said it has investigated Mr Thomson’s handling of three external administrations and found he failed to properly investigate the affairs of the companies, withdrew approximately $24,200 in remuneration not properly approved, failed to secure assets in a timely manner, did not adequately record his work, and failed to lodge documents with ASIC.

ASIC said the EU requires Mr Thomson to improve his systems and procedures, repay the $24,200 and appoint an independent expert to review his practices, who will then report to ASIC. Mr Thomson is also prevented from accepting any new appointments for three months, and can only accept joint and several appointments with another registered liquidator.

ASIC Commissioner John Price said liquidators are currently an area of focus for the regulator.

“We continue to see similar issues from our surveillance of some insolvency practices: that is, a lack of investigation, not complying with lodgement obligations, poor record keeping and lax practices around remuneration,” said Mr Price.

“Since 2013, ASIC has achieved 20 enforcement-related outcomes relating to liquidators, including cancelling or suspending registrations and entering into voluntary arrangements with liquidators to either exit the industry or engage independent experts to improve their insolvency services.

“We are committed to sanctioning those few practitioners who do not comply with the high standards the law imposes on them,” Mr Price said.

ASIC forces liquidator to repay $24K
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