The Australian Securities and Investments Commission (ASIC) today announced changes to its policy for security deposits for liquidators contained in ASIC Policy Statement 33 Security Deposits [PS 33].

These changes were made following submissions to ASIC by the National Institute of Accountants (NIA).

ASIC’s changes to Policy Statement 33 extend the current no-action position for failure to lodge and maintain security under section 1284 of the Corporations Act 2001 (the Act) to registered liquidators who hold a public practice certificate from the National Institute of Accountants, provided that certain requirements are met.

The Act requires a registered liquidator to lodge and maintain a security with ASIC. Under the revised Policy Statement 33, ASIC will not take enforcement action for failure to lodge and maintain a security where a registered liquidator:

1. holds a public practice certificate from the Institute of Chartered Accountants in Australia (ICAA), CPA Australia or the NIA;
2. provides to ASIC and complies with an undertaking that the liquidator will maintain minimum acceptable terms of professional indemnity insurance in accordance with the policy; and
3. in all other respects complies with the requirements for a member in practice of the ICAA, CPA Australia or the NIA.

Copies of the revised Policy Statement 33 are available from www.asic.gov.au/ps.

End of release

Download a copy of Policy Statement 33