ASIC cracking down on liquidators who ‘flout the law’

ASIC has warned it will continue to hold liquidators to account where necessary in its bid to regulate the insolvency and restructuring sector, upon the release of its latest report into the supervision of registered liquidators.

Yesterday, ASIC released its sixth annual registered liquidator report detailing the supervisory, enforcement, stakeholder liaison, policy and educative work ASIC undertook in 2016 to improve regulation of the insolvency and restructuring sector.

“We continue to build market trust and confidence in the profession and ASIC's regulation through our supervision activities. Independence, competence and remuneration remain key focus areas for us,” ASIC commissioner John Price said.

“While the majority of insolvency practitioners seek to do the right thing, some practitioners flout the law and we are focused on them. In saying that, I don't want to lose sight of the good work most registered liquidators do when companies fail, and we work closely with them on this front.”

Report 532 ASIC regulation of registered liquidators: January to December 2016, revealed that ASIC completed more than 50 reviews covering practitioner independence, competence and remuneration, and over 230 reviews as part of the ‘published notices and non-lodgement compliance’ project.

Further, a total of 401 reports of alleged misconduct about registered liquidators were assessed in the review period.

Education was a key tool for ASIC, with 68 per cent of reports of alleged misconduct against registered liquidators resulting in educative outcomes for those making the report.

However, ASIC also maintained its focus on enforcement by commencing six formal investigations, commencing a Companies Auditors and Liquidators Disciplinary Board (CALDB) action for one registered liquidator and commencing a court inquiry for two registered liquidators.

It also entered into two enforceable undertakings and reached nine negotiated resolutions, seven of which were from project work.

 

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