ASIC issues new guidance for liquidators

This guide is for individuals who are or wish to become registered liquidators under Schedule 2 to the Corporations Act 2001 (Corporations Act).

You can access the full guidance here.

The guidance explains how to apply for registration as a liquidator, particularly including the requirements that a person must meet to become a registered liquidator.

ASIC also explains the renewal of the registration process in this new guidance, and its policy on adequate and appropriate insurance.

Importantly, ASIC details the disciplinary actions a liquidator may be subject to if they fall foul of the regulations.

ASIC continues to take a stern approach to compliance, noting, for example, that it may direct a registered liquidator to comply with a lodgement requirement or to give information or documents.

If the direction is not complied with, ASIC may give a further direction not to accept further appointments or may apply to a court for orders directing compliance.

It remains that registration may be cancelled or suspended by ASIC. For example, if a registered liquidator becomes an insolvent under administration, registration is automatically cancelled.