Today ASIC released its first annual report into its supervision of the registered liquidators insolvency industry, detailing surveillance and enforcement outcomes in 2011. Issues of competence, independence and inappropriate self gain underpinned ASIC’s supervisory activity.
For the calendar year 2011, ASIC opened eight new formal investigations into registered liquidators, and concluded several others, including that against Stuart Ariff. At years end it had 10 open investigations on foot. ASIC also completed more than 200 reviews examining issues including practitioner independence, competence and remuneration. ASIC also has a program of compliance visits for registered liquidators based on risk assessment and market intelligence.
It is noteworthy that of the 426 complaints ASIC received in 2011 concerning registered liquidators (some about the same external administration), 51% required simple explanations to the complainant as to what is to be expected in an external administration, and what a liquidator is or is not entitled to do.