ASIC has cancelled the registration of Wagga Wagga liquidator, Stephen Alan Jay, at his request. This follows discussions between ASIC and Mr Jay in which ASIC expressed to Mr Jay concerns it had about Mr Jay's insolvency practice and his conduct of some of his external administrations.

Mr Jay has also informed ASIC that he will not, in future, re-apply for registration as a liquidator.

The cancellation took effect on 15 May 2014, following the finalisation of all of Mr Jay’s external administrations, including the lodgement of numerous statutory documents. Mr Jay is no longer permitted to practise as a liquidator.

ASIC’s concerns, which arose out of a pro-active surveillance of Mr Jay’s insolvency practice and some of his external administrations, included that Mr Jay:

• did not have appropriate operational procedures in place, including not having access to adequate resources, to properly conduct corporate insolvency services in an efficient and effective manner

• did not comply with statutory timeframes for lodgement of more than 300 statutory documents over a sustained period, and

• did not properly maintain various files.

Further, ASIC was concerned that in some instances, Mr Jay had failed to:

• provide creditors with adequate reports about external administrations

• provide creditors with remuneration reports or compliant remuneration reports

• provide creditors with Declarations of Independence, Relevant Relationships and Indemnities (DIRRIs) or compliant DIRRIs

• hold annual meetings with creditors, and

• either undertake proper investigations, or did not adequately document his investigations.

ASIC Commissioner John Price said, ‘This was a case in which, through dialogue, a practical and efficient means to resolve ASIC's concerns was identified. ASIC considers this outcome protects creditors and the public.

‘ASIC requires that registered liquidators maintain high standards of competency in order to adequately and properly fulfil their duties and functions for the benefit of creditors. We will continue to monitor practitioners and act where we consider practitioners do not meet these standards.’

Background

ASIC’s recent actions against registered liquidators who failed to meet their obligations include:

• [This MR was redacted on 26/04/2024 in accordance to ASIC policy - see INFO 152 Public comment on ASIC's regulatory activities]
• [This MR was redacted on 26/04/2024 in accordance to ASIC policy - see INFO 152 Public comment on ASIC's regulatory activities]
• [This MR was redacted on 26/04/2024 in accordance to ASIC policy - see INFO 152 Public comment on ASIC's regulatory activities]
• cancelling the registration of Melbourne liquidator Avitus Thomas (Tom) Fernandez, following successful application to the CALDB (refer: 13-308MR)
• [This media release was withdrawn in accordance with ASIC policy - see INFO 152 Public comment on ASIC's regulatory activities.]
• cancelling the registration of Sydney liquidator, Mark Darren Levi from the industry, following a successful application to the CALDB (refer: 13-227MR)
• [This MR was redacted on 20/02/2023 in accordance with ASIC policy - see INFO 152 Public comment on ASIC's regulatory activities.]
• cancelling the registration of Sydney liquidator, Peter Roger Grealish (refer: 13-132MR)
• cancelling the registration of Melbourne liquidator, Paul Anthony Pattison (refer: 13-033MR), and
• cancelling the registration of Peter George Biazos (bankrupted on 24 July 2013).

In the past two years, ASIC also negotiated arrangements with seven liquidators to either exit the industry or engage independent quality control reviewers to improve their insolvency services.

In some cases, health or other personal issues contributed towards liquidators’ inability to meet their professional duties and, in these circumstances, ASIC considers it is inappropriate to comment publicly about such individuals.