ASIC today released its annual report for the 2014 calendar year into the supervision of registered liquidators.
Report 430, ASIC regulation of registered liquidators: January to December 2014, details the supervisory, enforcement, stakeholder liaison and educative work ASIC undertook in its commitment to continue improving regulation of the insolvency and restructuring sector.
Key points
- ASIC initiated proceedings resulted in the removal of liquidators from the Walton Constructions group and, importantly, the Appeal Court’s ruling on the appropriate test of independence for liquidators.
- ASIC maintained its strong enforcement focus on registered liquidators (commencing 14 formal investigations in 2014 compared to 11 in 2013 and 13 in 2012) and, achieving the key enforcement outcomes set out below.
- Reports of alleged misconduct about registered liquidators continued a downward trend.
ASIC Commissioner John Price said he was pleased to see the continuing, overall downward trend in reports of alleged misconduct about registered liquidators and the strong enforcement outcomes.
Commissioner Price added, ‘ASIC works closely with registered liquidators when companies fail; particularly through ASIC’s administration of the Assetless Administration Fund, the Liquidator Assistance Program and enforcement action against directors and others based on registered liquidator reports to ASIC. However, as our report highlights, ASIC also seeks sanctions against those liquidators who don’t meet the high standards that the law imposes. We anticipate continuing our strong enforcement focus on those few practitioners who flout the law. We will also continue our programs aimed at supervising the majority who do the right thing so people can have trust and confidence in the profession.’
Enforcement outcomes
Key enforcement outcomes include:
- At the end of December 2014, 21 registered liquidators were subject to formal investigation or enforcement action.
- [This MR was redacted on 26/04/2024 in accordance to ASIC policy - see INFO 152 Public comment on ASIC's regulatory activities]
- The CALDB cancelled the registration of Mr Pino Fiorentino (refer: 14-160MR). [This MR was redacted on 26/04/2024 in accordance to ASIC policy - see INFO 152 Public comment on ASIC's regulatory activities]
- The Commonwealth Director of Public Prosecutions filed criminal charges against Mr Mark Darren Levi (refer: 14-314MR).
- [This MR was redacted on 26/04/2024 in accordance to ASIC policy - see INFO 152 Public comment on ASIC's regulatory activities]
- ASIC entered into five negotiated resolutions; two where the liquidator voluntarily agreed to cancel their registration and three where they agreed to a peer review program to address ASIC’s concerns.