A quality review carried out by an independent registered liquidator has addressed concerns raised by ASIC about some of the external administrations of Adelaide-registered liquidator, Paul Jorgensen, of Kennedy & Co.

The quality review formed part of an arrangement negotiated with ASIC after we identified concerns relating to remuneration, independence and inadequate documentation.

The arrangement negotiated with Mr Jorgensen involved reporting from an independent quality reviewer to ASIC to provide confidence that Mr Jorgensen adequately complied with his duties as a registered liquidator and met the required standards of competency.

Background

Competency is a key theme that emerged from ASIC's proactive surveillance program of registered liquidators. Competency, which remains a key focus area, goes to issues of capacity, resources and a liquidator's ability to carry out duties to the required high fiduciary standard. This case demonstrates ASIC's willingness to work constructively with liquidators to maintain high standards of competency in order to discharge their duties and obligations for the benefit of creditors.

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

• Successfully applying to the court to have three registered liquidators removed as joint liquidators of Walton Constructions Group following concerns about a conflict of interest (refer:14-167MR).

• Cancelling the registration of Sydney liquidator Pino Fiorentino, following a successful application by ASIC to the Companies Auditors and Liquidators Disciplinary Board (CALDB) (refer: 14-160MR).

• Accepting an enforceable undertaking (EU) from Perth liquidator, Simon Roger Coad, who has agreed to improve his systems and procedures and have his practice reviewed by an independent quality reviewer (refer: 14-089MR).

• Suspending the registration of liquidator Alan Godfrey Topp for six months from 1 May 2014, following a successful application by ASIC to the CALDB (refer 14-088MR).

• Suspending Sydney liquidator William James Hamilton’s registration for six months from 3 June 2014, following an adverse decision by the CALDB (refer: 14-080MR).

• Cancelling the registration of Melbourne liquidator Avitus Thomas (Tom) Fernandez, following a successful application by ASIC 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• [This media release was withdrawn in accordance with ASIC policy - see INFO 152 Public comment on ASIC's regulatory activities.]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 by ASIC 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 registrations of Sydney liquidator, Peter Roger Grealish (refer: 13-132MR), Melbourne liquidator, Paul Anthony Pattison (refer: 13-033MR), and Peter George Biazos (bankrupted on 24 July 2013).

Over the past two years, ASIC has entered into arrangements with a further seven liquidators to either exit the industry or engage independent quality control reviewers to improve their insolvency services.